SOC · Sable Offshore Corp.

Sable Offshore Corp. announced significant operational and financial milestones following the invocation of the Defense Production Act, which has enabled the company to restart production at the Santa Ynez Unit. Operationally, the company reported that 40 wells are currently online at Platform Harmony and Platform Heritage, with an average production of 750 gross barrels of oil per day per well. Management expects production to scale as remaining wells are brought online, with a targeted average of 700 barrels per day per well across 74 total wells. Platform Hondo is anticipated to come online in June 2026, contributing an estimated 10,000 gross barrels of oil per day once fully ramped. The company has allocated approximately $180 million for capital expenditures through the end of 2026, focusing on facility upgrades and production optimization.

Financially, Sable is actively pursuing a refinancing of its Senior Secured Term Loan in the second quarter of 2026, alongside discussions for federal credit support. The company has also raised approximately $95.0 million through its ATM program to bolster liquidity. Concurrent with the refinancing, management plans to implement a commodity hedging program to protect cash flows.

On the legal front, the company is pursuing substantial damages totaling over $447 million against the California Coastal Commission and Santa Barbara County for regulatory overreach and permit issues. Additionally, the U.S. Department of Justice has moved to terminate or modify a Consent Decree affecting the Santa Ynez Pipeline System, with a hearing scheduled for June 1, 2026. These legal and regulatory developments are critical for the company's ability to maintain uninterrupted operations and achieve its production targets.