Sable Offshore Corp. (“Sable,” or the “Company”) (NYSE: SOC) today announced its 2024 financial and operational results.
2024 Financial Highlights
- Reported a net loss of $617.3 million, primarily attributable to a non-cash change in fair value of warrant liabilities related to common share price and warrant price appreciation during the year, non-cash interest expense, and production restart-related operating expenses.
- Ended the year with 89,310,996 shares of Common Stock outstanding, after raising $773.8 million in gross equity proceeds in 2024.
- Concluded the year with outstanding debt of $833.5 million, inclusive of paid-in-kind interest, additional principal incurred from the debt amendment, and debt issuance costs.
- Ended the year with cash and cash equivalents balance of $300.4 million, exclusive of restricted cash balance of $35.4 million.
Fourth Quarter 2024 Operational Highlights
- Entered into an amendment to the Purchase and Sale Agreement, effectively extending the maturity date of the EM Term Loan by 60 days.
- Received approval from the California Office of the State Fire Marshal (“OSFM”) of Sable’s implementation of enhanced pipeline integrity standards for the Las Flores Pipeline System (the “Pipeline”), representing a significant milestone achievement in satisfying the requirements of the federal court ordered consent decree.
- Made significant progress in executing the anomaly repair program on the Pipeline.
Recent Events
- Received confirmation from the County of Santa Barbara, on February 12, 2025, that certain Pipeline anomaly repair work in the Coastal Zone is authorized by existing permits.
- The U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (“PHMSA”), on February 11, 2025, delivered notices to the OSFM that PHMSA does not object to the OSFM’s approval of Sable’s implementation of enhanced pipeline integrity standards for the Pipeline.
- Sable initiated hydrotesting of the Pipeline in early 2025 in advance of a potential restart of the SYU offshore platforms and associated Las Flores Canyon processing facilities.
Updated Guidance
- We expect to restart production at the SYU offshore platforms in the second quarter of 2025 upon the completion of the anomaly repair program, hydrotest of the Pipeline, and OSFM approval of our updated start-up plan.
- Sable expects to sequentially restart the SYU offshore platforms, beginning with Harmony, followed by Heritage, and then Hondo.
- Sable issued updated capex and production guidance for the second half of 2025, which reflects remaining capital expenditure plans after the expected restart in the second quarter of 2025.
Production
Net Average Daily Production (BOE/D)
2H25 Guidance: 20,000 ? 25,000
Working Interest (%): 100.0%
Average Net Revenue Interest (%): 83.6%
Operational Capex
Facilities Capex ($MM): $50 ? $60
Workover Capex ($MM): 20 ? 30
Total Capex ($MM): $70 ? $90
Operational Development
Workovers: 5 ? 7
Management Commentary
Sable’s Chairman and Chief Executive Officer, Jim Flores added, “The Sable team looks forward to finishing the restoration of the Pipeline to as-new condition and restarting production at the Santa Ynez Unit. The restart will provide low carbon intensity energy to California and enhance domestic energy security and affordability. Sable is excited to be a part of this solution.”
