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HOUSTON - Sable Offshore Corp. (NYSE:SOC), a $1.9 billion market cap oil and gas company currently trading at $19.09, is filing a motion to amend its lawsuit against the California Coastal Commission, seeking damages exceeding $347 million for delays in restarting its Las Flores Pipeline System, according to a press release statement. InvestingPro data shows the company faces significant financial challenges, with a weak financial health score and concerning liquidity metrics.
The company claims the Commission’s November 2024 Cease and Desist Order, which halted Sable’s anomaly repair program, caused unlawful delays to the pipeline restart. Sable states it later completed the repairs in February 2025 after receiving confirmation the work was authorized by existing Santa Barbara County permits. With a current ratio of 0.29, InvestingPro analysis indicates the company’s short-term obligations exceed its liquid assets, potentially complicating its operational recovery.
In a separate legal action, Sable filed a declaratory judgment against California on September 29 in Kern County, asking the court to confirm certain provisions of SB 237 do not apply to its pipeline system.
The company indicated it continues working with California authorities to resume petroleum transportation through the Las Flores system in accordance with a Federal Consent Decree. However, Sable warned that continued delays could prompt it to pursue an "Offshore Storage and Treating Vessel strategy," a method previously used from 1981-1994. Despite these challenges, analysts maintain optimistic price targets ranging from $34 to $47, suggesting potential upside. Discover more detailed financial insights and 8 additional key ProTips by subscribing to InvestingPro.
The Las Flores Pipeline System is critical for transporting oil from Sable’s Santa Ynez Unit assets, which restarted production in May 2025 after being shut down since June 2015. Currently, oil produced from these assets is being stored at the company’s Las Flores Canyon processing facility while awaiting pipeline restart approval.
Sable Offshore is an independent oil and gas company headquartered in Houston, focused on developing the Santa Ynez Unit in federal waters offshore California.
In other recent news, Sable Offshore Corp. has made significant strides in its operations and regulatory approvals. The company announced it submitted a formal Request for Approval of Restart Plans for its Las Flores Pipeline System to California regulators, satisfying all operational conditions mandated by the Federal Consent Decree. This includes completing anomaly repairs, safety valve installations, and control room enhancements. Additionally, a court partially granted injunctions related to the Las Flores Pipelines, allowing Sable to proceed with preparatory steps for restarting the pipelines, although the actual restart is contingent upon further compliance and approvals.
In another development, Benchmark reiterated its Buy rating for Sable Offshore, maintaining a price target of $47.00. This endorsement followed Sable’s presentation of its "Plan B," which involves an offshore storage and treating vessel. The company is awaiting approval from the Office of the State Fire Marshal for its restart plan. These recent developments reflect ongoing efforts by Sable Offshore to advance its operational capabilities and regulatory compliance.
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