Sable Offshore

Sable Offshore reported Q2 EPS of -0.42 USD (expectation 0.322 USD) and revenue of 137.13 million USD (expectation 220.85 million USD); the stock fell 13.26% in after-hours trading to 4.415 USD. Management highlights strong production (Santa Ynez 40,000 barrels/day) and cites sales and transport bottlenecks as well as sulfur penalties for the low sales volumes. Hondo is expected to be back online by the end of September, Heritage is already producing, and the company expects improved marketing conditions in Q4; a bridge refinancing was completed in July. Financial metrics show weaknesses (levered free cash flow over the last 12 months -761 million USD, current ratio 0.08, debt-to-equity 2.32). Management targets an unlevered free cash flow average of 152 million USD for H2 2026/2027 at Brent 75 USD and plans a 3P reserves report in Q1 2027 to support further refinancing. » More on de.investing.com

Sable Offshore announces the concurrent public placement of 32,467,533 common shares at $3.08 each and a $300 million senior convertible bond due 2031. The convertible bond carries a 6.5% coupon and an initial conversion rate equivalent to a conversion price of about $4.00 per share; conversions are restricted except in certain limited circumstances. Net proceeds from the share and bond offerings, together with a senior secured loan, will be used to repay an existing loan from Exxon Mobil, to cover transaction costs and for general corporate purposes. The offerings are expected to be completed simultaneously subject to customary conditions; the stock is trading near its 52-week low after a recent 61% decline last week. » More on de.investing.com

Shares of Sable Offshore fell to a new 52-week low of $3.72, down about 81.8% over the past year. InvestingPro rates the company as financially "WEAK" and it is struggling with high debt. Sable Offshore announced offerings of common stock for $100 million and senior convertible notes due 2031 for $300 million; JPMorgan is sole bookrunner and there are over-allotment options. At the same time, Sable Offshore plans a secured first‑lien credit facility of up to $1 billion to refinance an Exxon loan; a previously offered loan of $775 million drew little demand despite a 15% interest rate. » More on de.investing.com

Sable Offshore's stock climbed about 7% after the U.S. safety and environmental authority approved the restart of a second oil platform in the Santa Ynez unit. The U.S. Department of the Interior thereby permits the resumption of drilling activities, and the company has already begun selling crude oil. Overall, approval has now been granted for two of the unit's three platforms. » More on de.investing.com

A U.S. federal judge ordered the Interior Department to disclose internal communications related to approval of Sable Offshore’s pipeline system in Santa Barbara, including emails, text messages and advisory documents. According to the ruling, plaintiffs showed that officials apparently expedited approval processes and acted in "bad faith" to enable the restart. The order follows debates over a possible presidential emergency declaration and structural concerns about the pipeline after a 2015 oil spill; Sable’s stock subsequently fell about 4.8%. » More on de.investing.com