Latest news with #JimFlores
Yahoo
30-05-2025
- Business
- Yahoo
Sable Offshore Corp. (SOC): A Bull Case Theory
We came across a bullish thesis on Sable Offshore Corp. (SOC) on Welfare Capital Research's Substack. In this article, we will summarize the bulls' thesis on SOC. Sable Offshore Corp. (SOC)'s share was trading at $32.10 as of 23rd May. SOC's trailing and forward P/E were 47.20 and 1670 respectively according to Yahoo Finance. An oil rig pumping station with a clear sky behind it, illustrating the company's wide range of activities in the oil and gas business. Sable Offshore (SOC) delivered a major catalyst with the announcement of a production restart at platform Harmony and the near-completion of onshore pipeline hydrotests, reigniting investor confidence in the stock. Shares surged over 60% within a week, reaching new all-time highs from a previously depressed base. The move prompted a timely reentry by the writer, influenced by a fellow investor who had framed the core bullish thesis effectively. Even after the sharp rally, shares were seen as attractive around $30 due to reduced risk and the potential for strong future capital returns, including a meaningful dividend yield. On the heels of this rally, Sable executed a $290 million equity offering at $29.50, resulting in roughly 10% dilution. However, this was seen as a net positive, especially considering CEO Jim Flores—who owns 20% of the company—participated in the dilution himself, signaling alignment rather than shareholder exploitation. The market reaction was muted, with shares only down about 1% post-offering, reflecting investor approval. The raise boosts Sable's cash position to just under $500 million, providing ample liquidity to scale production and execute its growth strategy. With a $1.5 billion mixed securities shelf filed in April, future capital raises—likely in the form of debt—are expected to refinance $850 million owed to Exxon, potentially on better terms given market support. The author holds a 15% portfolio allocation to SOC at a $24.22 average cost, reinforcing conviction in the name and positioning for significant upside as production ramps and financial optionality increases. Previously, we have covered Sable Offshore Corp. (SOC) in January 2025 wherein we summarized a bullish thesis by Kooky_Lime1793 on r/wallstreetbets. In the reddit post, Sable Offshore (NYSE:SOC) was highlighted as a compelling turnaround story due to its acquisition of the Santa Ynez Unit from ExxonMobil at a steep discount. The user emphasized the asset's massive production potential, with projections of up to 30 million barrels annually and free cash flow of up to $1.65 billion, offering a nearly 20x upside in the best-case scenario. Despite regulatory risks, the author argued that successful production restart and shareholder return initiatives could drive the stock well above $40. Since our last coverage, the stock is up 40.17% as of 26th May. Sable Offshore Corp. (SOC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held SOC at the end of the fourth quarter which was 22 in the previous quarter. While we acknowledge the risk and potential of SOC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SOC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Associated Press
19-05-2025
- Business
- Associated Press
Sable Offshore Corp. Reports Restart of Oil Production at the Santa Ynez Unit and Anticipated Oil Sales from the Las Flores Pipeline System in July 2025
HOUSTON--(BUSINESS WIRE)--May 19, 2025-- Sable Offshore Corp. ('Sable,' or the 'Company')(NYSE: SOC) today announced that as of May 15, 2025, it has restarted production at the Santa Ynez Unit ('SYU') and has begun flowing oil production to Las Flores Canyon ('LFC'). Additionally, with the completion of the Gaviota State Park anomaly repairs on the Las Flores Pipeline System (the 'Onshore Pipeline') on May 18, 2025, Sable has now completed its anomaly repair program on the Onshore Pipeline as specified by the Consent Decree, the governing document for the restart and operations of the Onshore Pipeline. Seven of the eight sections of the Onshore Pipeline have been successfully hydrotested. Sable will complete the final hydrotest in order to meet the final operational condition to restart the Onshore Pipeline as outlined in the Consent Decree. Sable expects to fill the ~540,000 barrels of crude oil storage capacity at LFC by the middle of June 2025 and subsequently recommence oil sales in July 2025. Production Restart Updated Guidance Management Commentary 'SOC is proud to have safely and responsibly achieved first production at the Santa Ynez Unit' said Jim Flores, Chairman and Chief Executive Officer. He continued, 'The impressive well tests from Platform Harmony confirm the prolific nature of the Santa Ynez Unit reservoir after being dormant for ten years. SOC is excited about our development plan and prospects for the future. This milestone achievement is a result of a tremendous amount of effort from all of Sable's employees, contractors, Board of Directors, stakeholders, and suppliers. We are very grateful for the cooperation and partnership from our local community and regulatory bodies as we seek to provide energy security to the State of California.' About Sable Sable Offshore Corp. is an independent oil and gas company, headquartered in Houston, Texas, focused on responsibly developing the Santa Ynez Unit in federal waters offshore California. The Sable team has extensive experience safely operating in California. Forward-Looking Statements The information in this press release include 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words 'could,' 'should,' 'will,' 'may,' 'believe,' 'anticipate,' 'intend,' 'estimate,' 'expect,' 'project,' 'continue,' 'plan,' 'forecast,' 'predict,' 'potential,' 'future,' 'outlook,' and 'target,' the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements will contain such identifying words. These statements are based on the current beliefs and expectations of Sable's management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Factors that could cause Sable's actual results to differ materially from those described in the forward-looking statements include: the ability to recommence production of the SYU assets and the cost and time required therefor; global economic conditions and inflation; increased operating costs; lack of availability of drilling and production equipment, supplies, services and qualified personnel; geographical concentration of operations; environmental and weather risks; regulatory changes and uncertainties; litigation, complaints and/or adverse publicity; privacy and data protection laws, privacy or data breaches, or loss of data; our ability to comply with laws and regulations applicable to our business; and other one-time events and other factors that can be found in Sable's Annual Report on Form 10-K for the year ended December 31, 2024, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K, which are filed with the Securities and Exchange Commission and are available on Sable's website ( ) and on the Securities and Exchange Commission's website ( ). Except as required by applicable law, Sable undertakes no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this press release. Disclaimers Restart Production The SYU assets discussed in this press release have not sold commercial quantities of hydrocarbons since such SYU assets were shut in during June of 2015 when the only Onshore Pipeline transporting hydrocarbons produced from such SYU assets to market ceased transportation. There can be no assurance that the necessary permits will be obtained that would allow the Onshore Pipeline to recommence transportation and allow the SYU assets to recommence sales. If Restart Production (as defined in the purchase and sale agreement, dated November 1, 2022 (as amended, the 'Sable-EM Purchase Agreement'), between Sable Offshore Corp., Exxon Mobil Corporation ('EM') and Mobil Pacific Pipeline Company) is not achieved by March 1, 2026, the terms of the Sable-EM Purchase Agreement with EM could result in the SYU assets being reverted to EM without any compensation to Sable therefor. Use of projections and estimates This presentation contains financial projections and estimates for Sable, including with respect to its future capital expenditures, initial timing and production estimates and future cash costs. Sable's auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections and estimates for the purpose of their inclusion in this presentation, and, accordingly, no such auditors have expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this presentation. These projections and estimates are for illustrative purposes only and should not be relied upon as being necessarily indicative of future results. The assumptions and estimates underlying the projected information are inherently uncertain and are subject to a wide variety of significant business, regulatory, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projected information. Even if the assumptions and estimates are correct, projections and estimates are inherently uncertain due to a number of factors outside Sable's control. Accordingly, there can be no assurance that the projected results are indicative of Sable's future performance or that actual results will not differ materially from those presented in the projected information. Inclusion of the projected information in this presentation should not be regarded as a representation by any person, including, without limitation, Sable, that the results contained in the projected information will be achieved. View source version on CONTACT: Investor Contact: Harrison Breaud Vice President, Finance & Investor Relations [email protected] 713-579-8111 KEYWORD: UNITED STATES NORTH AMERICA TEXAS INDUSTRY KEYWORD: OIL/GAS ENERGY SOURCE: Sable Offshore Corp. Copyright Business Wire 2025. PUB: 05/19/2025 06:07 AM/DISC: 05/19/2025 06:06 AM
