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HOUSTON - Sable Offshore Corp. (NYSE: SOC), an independent oil and gas company with a market capitalization of $2.87 billion, has initiated a public offering of $200 million in common stock, the firm stated on Wednesday. The Houston-based company, whose stock has surged 149% over the past year according to InvestingPro data, also intends to provide underwriters a 30-day option to buy an additional $30 million in common stock.
The proceeds from the offering are earmarked for capital expenditures, working capital, and general corporate purposes. With a current ratio of 1.67, InvestingPro analysis shows the company maintains healthy liquidity with assets exceeding short-term obligations. Sable Offshore has not guaranteed the completion of the offering nor disclosed the terms, noting that the finalization depends on market conditions.
J.P. Morgan, Jefferies, and TD Cowen are serving as joint book-running managers for the offering. The related registration statement on Form S-3, including a prospectus, was filed with the Securities and Exchange Commission (SEC) and became effective as of May 1, 2025.
The company, which specializes in developing the Santa Ynez Unit in federal waters off the coast of California, emphasized that the offering is strictly regulated. The press release clarified that this announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities.
Sable Offshore’s statement also contained forward-looking language as defined by the Private Securities Litigation Reform Act of 1995, cautioning that actual results could vary significantly due to various risks and uncertainties.
Investors should note that the information in this article is based on a press release statement from Sable Offshore Corp. and that the offering is subject to strict adherence to U.S. securities laws.
In other recent news, Sable Offshore Corp. has seen significant developments regarding its production and operational plans. Analysts at Benchmark have raised their price target for the company to $47.00, maintaining a Buy rating, as Sable Offshore nears the restart of commercial production. This optimism is supported by Sable Offshore’s upgraded production guidance for the second half of the year, predicting that production could surpass the pre-shutdown levels of 45,000 barrels of oil equivalent per day. The company’s operational expenses are expected to decrease due to the increased production volumes, enhancing profitability.
Additionally, Sable Offshore has successfully restarted oil production at the Santa Ynez Unit, with oil flowing to Las Flores Canyon at approximately 6,000 barrels per day. The company plans to fill its crude oil storage capacity and recommence sales by July 2025. TD Cowen analysts responded by increasing their price target to $40.00, also maintaining a Buy rating, citing the substantial production increase and completion of pipeline repairs. These positive developments are further underscored by the completion of critical repairs and the anticipated recommissioning of operations.
However, Sable Offshore faces regulatory challenges with the California Coastal Commission, which is seeking $15 million in fines and pursuing Coastal Development Permits that could impact operational timelines. Despite these hurdles, Benchmark analysts remain confident in the company’s prospects, maintaining a Buy rating with a $37.00 price target. Investors are closely monitoring these developments as Sable Offshore progresses towards increased production and navigates regulatory requirements.
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