Sable Offshore Corp. Reports Second Quarter 2024 Financial and Operational Results
Sable Offshore Corp. (NYSE: SOC) reported its Q2 2024 financial and operational results. The company faced a net loss of $165.4 million, primarily due to changes in warrant liabilities, production restart expenses, and share-based compensation. SOC ended the quarter with 64,845,435 outstanding shares, $790.4 million in debt, and $112.1 million in cash and cash equivalents.
Operationally, SOC received final approval for the Santa Ynez Unit ownership and operatorship, hired additional staff, and initiated repair programs. The company is preparing for production restart, conducting safety tests, and implementing equipment upgrades. Recent developments include OSFM's reaffirmation of the 2021 Risk Analysis Plan and approval of a deadline extension to July 1, 2025 for its implementation.
Sable Offshore Corp. (NYSE: SOC) ha riportato i risultati finanziari e operativi del secondo trimestre del 2024. La società ha registrato una perdita netta di 165,4 milioni di dollari, principalmente a causa delle variazioni delle passività per warrant, delle spese per il riavvio della produzione e della compensazione basata sulle azioni. SOC ha chiuso il trimestre con 64.845.435 azioni in circolazione, 790,4 milioni di dollari di debito e 112,1 milioni di dollari in cassa e equivalenti in cassa.
Operativamente, SOC ha ricevuto l'approvazione definitiva per la proprietà e l'operatività dell'unità Santa Ynez, ha assunto personale aggiuntivo e ha avviato programmi di riparazione. L'azienda si sta preparando per il riavvio della produzione, conducendo test di sicurezza e implementando aggiornamenti delle attrezzature. Gli sviluppi recenti includono la riconferma del Piano di Analisi dei Rischi del 2021 da parte di OSFM e l'approvazione di un'estensione della scadenza al 1° luglio 2025 per la sua attuazione.
Sable Offshore Corp. (NYSE: SOC) reportó sus resultados financieros y operativos del segundo trimestre de 2024. La empresa enfrentó una pérdida neta de 165,4 millones de dólares, principalmente debido a cambios en las pasivos de warrants, gastos de reinicio de producción y compensación basada en acciones. SOC finalizó el trimestre con 64,845,435 acciones en circulación, 790,4 millones de dólares en deudas, y 112,1 millones de dólares en efectivo y equivalentes de efectivo.
Operativamente, SOC recibió la aprobación final para la propiedad y operación de la Unidad Santa Ynez, contrató personal adicional e inició programas de reparación. La empresa se está preparando para el reinicio de la producción, realizando pruebas de seguridad e implementando actualizaciones de equipos. Los desarrollos recientes incluyen la reafirmación del Plan de Análisis de Riesgos 2021 por parte de OSFM y la aprobación de una extensión de plazo hasta el 1 de julio de 2025 para su implementación.
Sable Offshore Corp. (NYSE: SOC)는 2024년 2분기 재무 및 운영 결과를 보고했습니다. 이 회사는 1억 6,540만 달러의 순손실을 기록했으며, 이는 주식 매입권 부채 변화, 생산 재가동 비용, 주식 기반 보상 때문입니다. SOC는 분기를 마무리하며 64,845,435주의 발행주식, 7억 9,040만 달러의 부채, 1억 1,210만 달러의 현금 및 현금 등가물을 보유하고 있습니다.
운영 측면에서 SOC는 산타 이네즈 유닛 소유권 및 운영 권한에 대한 최종 승인을 받았고, 추가 인력을 고용했으며, 수리 프로그램을 시작했습니다. 이 회사는 생산 재가동을 준비하며, 안전 검사를 실시하고 장비 업그레이드를 구현하고 있습니다. 최근 개발에는 OSFM이 2021년 위험 분석 계획을 재확인하고 이를 실행하기 위한 기한을 2025년 7월 1일로 연장하는 승인 포함되어 있습니다.
Sable Offshore Corp. (NYSE: SOC) a publié ses résultats financiers et opérationnels du deuxième trimestre 2024. La société a enregistré une perte nette de 165,4 millions de dollars, principalement en raison de variations des passifs liés aux bons de souscription, de frais de redémarrage de la production et de rémunération basée sur des actions. SOC a terminé le trimestre avec 64 845 435 actions en circulation, 790,4 millions de dollars de dettes, et 112,1 millions de dollars en liquidités et équivalents de liquidités.
Sur le plan opérationnel, SOC a obtenu l'approbation finale pour la propriété et l'exploitation de l'unité Santa Ynez, a embauché du personnel supplémentaire et a lancé des programmes de réparation. L'entreprise se prépare pour le redémarrage de la production, effectue des tests de sécurité et met en œuvre des mises à niveau de l'équipement. Parmi les développements récents, on trouve la réaffirmation par l'OSFM du Plan d'Analyse des Risques 2021 et l'approbation d'un prolongement du délai jusqu'au 1er juillet 2025 pour sa mise en œuvre.
Sable Offshore Corp. (NYSE: SOC) hat seine finanziellen und betrieblichen Ergebnisse für das zweite Quartal 2024 bekannt gegeben. Das Unternehmen verzeichnete einen Nettoverlust von 165,4 Millionen US-Dollar, hauptsächlich aufgrund von Änderungen bei den Warrant-Verbindlichkeiten, Kosten für den Produktionsneustart und aktienbasierter Vergütung. SOC schloss das Quartal mit 64.845.435 ausstehenden Aktien, 790,4 Millionen US-Dollar Schulden und 112,1 Millionen US-Dollar in Barmitteln und Barmitteläquivalenten ab.
Operativ erhielt SOC die endgültige Genehmigung für das Eigentum und die Betriebsführung der Santa Ynez-Einheit, stellte zusätzliches Personal ein und startete Reparaturprogramme. Das Unternehmen bereitet sich auf den Produktionsneustart vor, führt Sicherheitstests durch und implementiert Geräteupgrades. Zu den aktuellen Entwicklungen gehört die Bestätigung des Risk Analysis Plans von 2021 durch die OSFM sowie die Genehmigung einer Fristverlängerung bis zum 1. Juli 2025 für die Umsetzung.
- Received final approval for Santa Ynez Unit ownership and operatorship
- Increased staffing with 13 new employees and over 200 contractors for production restart
- Conducted over 3,000 safety device tests and performed pipeline integrity surveys
- Obtained approval for additional time to implement the 2021 Risk Analysis Plan
- Submitted production restart plans to OSFM for review and approval
- Reported a net loss of $165.4 million for Q2 2024
- Outstanding debt of $790.4 million
- Facing challenges with permit denials from Santa Barbara County for safety valve installations
- Production restart delayed due to ongoing regulatory and compliance issues
Sable Offshore Corp.'s Q2 2024 results present a mixed picture. The reported net loss of
The operational progress towards restarting production is positive, with key regulatory approvals received and staffing increases. However, the delayed implementation of the 2021 Risk Analysis and Implementation Plan to July 2025 could impact the timeline for full operational recovery. Investors should closely monitor the company's ability to navigate regulatory requirements and successfully restart production to generate cash flow and address its debt burden.
Sable's operational updates show progress towards restarting production at the Santa Ynez Unit. Key achievements include:
- Obtaining final approval for ownership and operatorship of SYU
- Hiring 13 employees and 200+ contractors
- Initiating anomaly repair program on pipelines
- Conducting over 3,000 safety device tests
- Commencing work on emissions reduction equipment
The regulatory landscape for Sable remains complex. Positive developments include OSFM's reaffirmation of the 2021 Plan's compliance with AB 864 and the approval of additional time for implementation. However, challenges persist:
- Santa Barbara County's permit denial for safety valve installation
- The need to resolve discrepancies between the 2021 Plan and the Supplemental Plan
- A new deadline of July 1, 2025, for implementing the 2021 Plan
Second Quarter 2024 Financial Highlights
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Reported a net loss of
$165.4 million - Ended the quarter with 64,845,435 shares of Common Stock outstanding, inclusive of 4,679,166 restricted stock awards.
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Ended the quarter with outstanding debt of
$790.4 million $112.1 million $35.1 million
Second Quarter 2024 Operational Highlights
- Received final approval for the assignment of ownership and operatorship of the Santa Ynez Unit (“SYU”) comprising 16 Outer Continental Shelf leases covering approximately 76,000 acres and three production platforms from the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement, respectively.
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Continued staffing additions in preparation for restart of production by hiring an additional 13 employees and staffing over 200 contractors during the quarter, at both Sable’s
Houston headquarters and field locations. -
Contracted repair crews to begin our anomaly repair program and other requirements necessary to meet conditions of the federal court consent decree on California Pipelines Line 324 and Line 325 (the “Pipelines”) in cooperation with and under the supervision of the
California Office of the State Fire Marshal (“OSFM”). - At the SYU offshore platforms, Las Flores Canyon processing facilities, and the Pipelines, Sable has conducted vessel inspections, completed over 3,000 safety device tests, and performed pipeline integrity surveys in preparation for the restart of production. Sable has also initiated work scope for the installation of emissions reduction equipment, compressor overhauls, and various other equipment, safety and quality enhancement projects.
Recent Events
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In a letter dated July 10, 2024, the OSFM re-affirmed that Pacific Pipeline Company’s (“PPC”) April 2021 Risk Analysis and Implementation Plan (the “2021 Plan”) remains in effect and complies with California State Assembly Bill 864. PPC had filed a supplemental Revised Risk Analysis and Implementation Plan (the “Supplemental Plan”) after the County of
Santa Barbara denied permits requested to comply with the 2021 Plan. While OSFM acknowledged PPC’s efforts to reduce spill response times and releases, it determined that the Supplemental Plan is not considered as effective in mitigating potential environmental impacts compared to the 2021 Plan. Consequently, the 2021 Plan, which uses the best available technology, remains in effect. Sable continues discussions to resolve the permit denial with the County ofSanta Barbara for the installation of safety valves included in the 2021 Plan. - The OSFM approved Sable’s request for additional time to implement the 2021 Plan. Sable requested additional time from the OSFM on July 29, 2024 and the OSFM approved Sable’s request on July 31, 2024, setting a new deadline for implementation of the 2021 Plan of July 1, 2025.
- On July 29, 2024, Sable met its 60-day advanced notice requirement to submit its production restart plans for the Pipelines to the OSFM for review and approval.
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The County of
Santa Barbara determined Sable’s applications to be complete for Change of Owner, Change of Operator, and Guarantor of the SYU, Pacific Offshore Pipeline Company Gas Plant, and the Pipelines on July 30, 2024.
About Sable
Sable Offshore Corp. is an independent oil and gas company, headquartered in
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 SYU 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 Sable’s website (www.sableoffshore.com) and 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 SYU 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/20240812413988/en/
Investor Contact:
Harrison Breaud
Director, Finance & Investor Relations
IR@sableoffshore.com
713-579-8111
Source: Sable Offshore Corp.
FAQ
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