Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Sable Offshore Corp (NYSE:SBL) stock rose 28.5% at close and climbed an additional 7.3% after hours following a court’s partial granting of injunctions related to the Las Flores Pipelines. The court’s decision allows Sable to move forward with certain preparatory steps for restarting the pipelines, which had been shut down since a 2015 oil spill.
The court ruling permits Sable to proceed with obtaining necessary approvals and permits, but it prohibits the actual restart of the pipelines until 10 court days after Sable provides a signed notice of compliance. This development is seen as a positive step for Sable, as it enables the company to continue preparations for the pipeline’s eventual restart, pending the fulfillment of legal and regulatory requirements.
The Las Flores Pipelines, connected to the Santa Ynez Unit’s offshore platforms, have been a focal point of legal and environmental scrutiny. The pipelines were initially approved in 1986, but a rupture in 2015 led to their shutdown. Sable acquired the pipelines in 2024 and obtained State Waivers in December of the same year, which petitioners argued violated environmental laws due to the lack of updated reviews and public input.
The court found some merit in the petitioners’ claims under the California Environmental Quality Act (CEQA) and the Elder California Pipeline Safety Act (CPSA), but it also noted that additional approvals are required before the pipelines can be restarted. This partial victory for Sable allows the company to pursue necessary steps short of actual operation, while maintaining the petitioners’ ability to seek further relief if needed.
The court also denied Sable’s motions to compel the deposition of the petitioners’ expert and to strike his declaration, finding them unnecessary for the current ruling. The temporary restraining order issued earlier remains in effect until a formal court order is entered, ensuring compliance with the legal process as Sable advances its plans.
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