SOC · Sable Offshore Corp.

Sable Offshore Corp. announced first quarter 2026 results marked by a significant $197.0 million net loss, primarily attributable to operating expenses from resuming oil transportation via the Santa Ynez Pipeline System and restarting oil sales from the Santa Ynez Unit, in compliance with the U.S. Department of Energy's Defense Production Act order. This resumption represents a key operational milestone, enabling sales of American oil after a prolonged hiatus. Non-cash items heavily influenced the bottom line, including $34.7 million in interest expense and a $44.2 million loss on the change in fair value of warrant liabilities, alongside general and administrative costs. Balance sheet highlights reveal liquidity pressures with $52.2 million in cash and equivalents against $956.3 million in short-term debt, which includes paid-in-kind interest, and $37.7 million in accounts payable. Capital spending totaled $44.4 million, with $21.2 million tied to one-time pipeline segment filling costs ($6.5 million non-cash), and actual cash outlays of $21.1 million. Equity position shows 150,321,586 common shares outstanding, bolstered by $95.0 million gross proceeds from selling 7,000,634 shares through the ATM program to date. Management is advancing debt refinancing discussions for the Senior Secured Term Loan, targeting completion in Q2 2026, which could alleviate near-term debt maturities and improve capital structure. These developments underscore operational progress amid financial challenges, with investor focus on refinancing execution and sustained production ramp-up.