Sable Offshore(NYSE) SOC

Sable extracts oil and gas from beneath the ocean floor near California. It uses long pipelines to move these fuels to onshore processing plants. This energy helps power homes and fuels vehicles for everyday people.

What Sable Brings to Market

• Offshore Production: 16 federal leases covering approximately 76,000 acres in the Santa Ynez field; involves three production platforms named Hondo, Harmony, and Heritage.
• Pipeline Systems: Interstate network known as the Santa Ynez Pipeline System; transports crude oil from offshore platforms to an inland terminal in Kern County, California.
• Onshore Processing: Facilities at Las Flores Canyon; cleans and stores oil before it enters the main pipeline for sale to refineries.

Recent Moves and Milestones

• Acquired the Santa Ynez field and related pipeline assets from Exxon Mobil in February 2024.
• Transitioned from a special purpose acquisition company named Flame Acquisition Corp to an operating oil and gas firm.
• Launched an "at the market" equity offering in February 2026 to sell up to $250 million in common stock.
• Entered a second debt amendment with Exxon in November 2025 to extend loan maturity and increase interest rates to 15%.

Navigating a Complex Landscape

Sable relies on the Defense Production Act to prioritize pipeline operations despite opposition from California state agencies. This federal order helps ensure domestic oil reaches U.S. refineries and military forces during supply disruptions.

The company manages an integrated system of offshore assets and inland infrastructure. These facilities provide a direct link between offshore reserves and California's energy grid.

A Look at the Books

• Revenue reached $1.3 million in Q1 2026, up from $0 in Q1 2025 following the restart of oil sales.
• Net loss deepened to $197 million for the quarter ended March 31, 2026, compared to a $109.5 million loss the previous year.
• Operating cash flow reached negative $82.4 million in Q1 2026, a 72% worsening from the negative $47.9 million reported in Q1 2025.
• Total debt stood at $956.3 million as of March 31, 2026, with maturity accelerated to June 26, 2026, following the first sale of hydrocarbons.

The Road Ahead

Sable has transitioned from an empty acquisition vehicle to an active offshore producer through the purchase of major California oil assets. Its evolution now depends on navigating significant legal challenges and refinancing nearly $1 billion in debt due in mid-2026.