Sable Offshore Corp. Announces Completion of Redemption of Public Warrants

Rhea-AI Summary

Sable Offshore Corp. (NYSE: SOC) has announced the completion of its public warrants redemption program. 99.8% of outstanding public warrants were exercised by holders to purchase common stock at $11.50 per share, resulting in the issuance of 15,957,820 shares and generating $183.5 million in cash proceeds for the company. Any unexercised warrants were redeemed at $0.01 per warrant. The public warrants have ceased trading on NYSE, while private placement and working capital warrants remain outstanding.

Positive

• Generated $183.5 million in cash proceeds from warrant exercises
• 99.8% successful warrant exercise rate
• Strengthened balance sheet through warrant redemption program

Negative

• Dilution of existing shareholders due to issuance of 15.9 million new shares

Insights

Financial Analyst

The warrant redemption has significantly strengthened Sable Offshore's balance sheet, bringing in $183.5 million in fresh capital while increasing the share count by 15,957,820 shares. With 99.8% of warrants exercised rather than redeemed for $0.01, investors have shown strong confidence in SOC's valuation above the $11.50 strike price.

This cleanup of the capital structure eliminates potential future dilution from public warrants and simplifies the equity story. However, investors should note that private placement and working capital warrants remain outstanding, representing remaining potential dilution. The high exercise rate suggests the market views SOC's current trading price and future prospects favorably, as warrant holders were willing to pay a premium to maintain their equity exposure.

HOUSTON--(BUSINESS WIRE)-- Sable Offshore Corp. (NYSE: SOC, “Sable”, or the “Company”) today announced the results of its previously announced redemption of all of its outstanding publicly held warrants (the “Public Warrants”) to purchase shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”).

As of November 4, 2024 (the “Redemption Date”), approximately 99.8% of the Company’s outstanding Public Warrants were exercised by the holders thereof to purchase fully paid and non-assessable shares of Common Stock at an exercise price of $11.50 per share. As a result, holders of the Public Warrants received an aggregate of 15,957,820 shares of the Company’s Common Stock in exchange for $183.5 million in cash proceeds to the Company. All unexercised and outstanding Public Warrants as of 5:00 p.m. New York City time on the Redemption Date were redeemed at a price of $0.01 per Public Warrant and, as a result, no Public Warrants currently remain outstanding and the Public Warrants have ceased trading on the New York Stock Exchange. The private placement warrants and working capital warrants to purchase Common Stock that were issued under the Warrant Agreement and that are still held by the initial holders thereof or their permitted transferees were not subject to this redemption and remain outstanding.

About Sable

Sable Offshore Corp. is an independent oil and gas company, headquartered in Houston, Texas, focused on responsibly developing the Santa Ynez Unit in federal waters offshore California. The Sable team has extensive experience safely operating in California.

Forward Looking Statements

The information in this press release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “could,” “should,” “will,” “ may,” “ believe,” “ anticipate,” “ intend,” “ estimate,” “expect,” “project,” “continue,” “plan,” forecast,” “predict,” “potential,” “future,” “outlook,” and “target,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements will contain such identifying words. These statements are based on the current beliefs and expectations of Sable’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Factors that could cause Sable’s actual results to differ materially from those described in the forward-looking statements include: the ability to recommence production of the Santa Ynez Unit assets and the cost and time required therefor; global economic conditions and inflation; increased operating costs; lack of availability of drilling and production equipment, supplies, services and qualified personnel; geographical concentration of operations; environmental and weather risks; regulatory changes and uncertainties; litigation, complaints and/or adverse publicity; privacy and data protection laws, privacy or data breaches, or loss of data; our ability to comply with laws and regulations applicable to our business; and other one-time events and other factors that can be found in Sable’s Annual Report on Form 10-K for the year ended December 31, 2023, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed with the Securities and Exchange Commission and are available on the Securities and Exchange Commission’s website (www.sec.gov). Except as required by applicable law, Sable undertakes no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release.

Disclaimers

Non-Producing Assets

The Santa Ynez Unit assets have not produced commercial quantities of hydrocarbons since such assets were shut in during May of 2015 when the only pipeline transporting hydrocarbons produced from such assets to market ceased operations. There can be no assurance that the necessary permits will be obtained that would allow the pipeline to recommence transportation and allow the assets to recommence production. If production is not recommenced by January 1, 2026, the terms of the asset acquisition with ExxonMobil Corporation would potentially result in the assets being reverted to ExxonMobil Corporation without any compensation to Sable therefor.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241105300488/en/

Investor Contact:

Harrison Breaud

Director, Finance & Investor Relations

IR@sableoffshore.com

713-579-8111

Source: Sable Offshore Corp.

FAQ

How much cash did Sable Offshore (SOC) raise from the public warrant redemption?

Sable Offshore (SOC) raised $183.5 million in cash proceeds from the public warrant redemption program.

How many shares did Sable Offshore (SOC) issue from the warrant exercise?

Sable Offshore (SOC) issued 15,957,820 shares of common stock from the warrant exercise.

What was the exercise price for Sable Offshore's (SOC) public warrants?

The exercise price for Sable Offshore's (SOC) public warrants was $11.50 per share.

What happened to unexercised Sable Offshore (SOC) public warrants?

Unexercised Sable Offshore (SOC) public warrants were redeemed at $0.01 per warrant and ceased trading on the NYSE.