Sable Offshore Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 27 February 2026: press release. The quarter’s numbers.

Key takeaways

Full-year net loss of $410.2 million: The company reported a net loss of $410.2 million for 2025, mainly from restart-related operating expenses, general and administrative expenses, and non-cash interest expense. Source
Production restarted in May 2025: Santa Ynez Unit production restarted as of May 15, 2025, with oil flowing to Las Flores Canyon. Source
Oil held in onshore tanks: Oil produced since restart moves by pipeline to onshore storage tanks at Las Flores Canyon, pending transport by pipeline or OS&T vessel. Source
Emergency special permit issued: On December 23, 2025, PHMSA issued an emergency special permit for segments 324 and 325, covering cathodic protection and seam weld corrosion. Source
Short-term debt was $921.6 million: Short-term debt, including paid-in-kind interest, was $921.6 million at year end, compared with $896.6 million at the prior quarter-end. Source
Term loan rate raised to 15%: The Second Amendment raised the Senior Secured Term Loan interest rate from 10% to 15% per annum, compounded annually, and extended the maturity date. Source
November private placement of $250.0 million: Subscription agreements dated November 10, 2025 cover 45,454,546 shares sold to institutional investors, raising $250.0 million in gross proceeds. Source
OS&T strategy pursued as alternative: As an alternative to the Santa Ynez Pipeline System, the company is pursuing an OS&T strategy with shuttle tankers for federal crude from the Santa Ynez Unit. Source

“Sable has not sold commercial quantities of hydrocarbons since acquisition of the Santa Ynez Unit.”
Sable Offshore Corp., press release

What changed from last quarter

New: The Second Amendment to the Senior Secured Term Loan took effect, raising the interest rate from 10% to 15%, compounded annually. Source
New: PHMSA concurred that the Santa Ynez Pipeline System is an interstate facility and considers it an active pipeline. Source
New: PHMSA issued an emergency special permit for segments 324 and 325 on December 23, 2025. Source
Ended: The prior release named the Las Flores Pipeline System as a route for resumed transport; this release names the Santa Ynez Pipeline System instead.

Full year results and net loss

Full-year net loss of $410.2 million: The company reported a net loss of $410.2 million for 2025, mainly from restart-related operating expenses, general and administrative expenses, and non-cash interest expense. Source
Warrant gain offset part of loss: The prior quarter release reported a net loss of $110.4 million, with a non-cash gain on warrant liabilities partly offsetting the loss.

Production restart and oil storage

Production restarted in May 2025: Santa Ynez Unit production restarted as of May 15, 2025, with oil flowing to Las Flores Canyon. Source
Oil held in onshore tanks: Oil produced since restart moves by pipeline to onshore storage tanks at Las Flores Canyon, pending transport by pipeline or OS&T vessel. Source
Transport route wording changed: The release names the Santa Ynez Pipeline System as the pipeline route for resumed transport, alongside an OS&T vessel. Source

“There can be no assurance that the necessary approvals will be obtained that would allow the Company to recommence sales.”
Sable Offshore Corp., press release

Pipeline approvals and regulatory status

Hydrotests completed in May 2025: Hydrotests of all Santa Ynez Pipeline System segments were completed; management said this satisfied the final operational condition under the Consent Decree for segments 324 and 325. Source
PHMSA treats pipeline as interstate: On December 17, 2025, PHMSA concurred that the Santa Ynez Pipeline System is an interstate facility, giving PHMSA exclusive regulatory authority over it. Source
Emergency special permit issued: On December 23, 2025, PHMSA issued an emergency special permit for segments 324 and 325, covering cathodic protection and seam weld corrosion. Source

Debt, cash and term loan

Short-term debt was $921.6 million: Short-term debt, including paid-in-kind interest, was $921.6 million at year end, compared with $896.6 million at the prior quarter-end. Source
Cash rose from $41.6 million: Cash and cash equivalents were $97.7 million at year end, up from $41.6 million at the prior quarter-end.
Term loan rate raised to 15%: The Second Amendment raised the Senior Secured Term Loan interest rate from 10% to 15% per annum, compounded annually, and extended the maturity date. Source

Equity raised in 2025

May offering upsized to 10 million shares: An upsized underwritten public offering closed May 23, 2025, with gross proceeds of about $295.0 million before discounts and expenses. Source
November private placement of $250.0 million: Subscription agreements dated November 10, 2025 cover 45,454,546 shares sold to institutional investors, raising $250.0 million in gross proceeds. Source
Offering prices differed by period: The November 2025 private placement was priced at $5.50 per share, below the $29.50 per share May 2025 public offering price. Source

Strategy and route to sales

OS&T strategy pursued as alternative: As an alternative to the Santa Ynez Pipeline System, the company is pursuing an OS&T strategy with shuttle tankers for federal crude from the Santa Ynez Unit. Source
No commercial sales since acquisition: Management said the company has not sold commercial quantities of hydrocarbons since acquiring the Santa Ynez Unit. Source
Approvals for sales not assured: Management said there can be no assurance that the approvals needed to recommence sales will be obtained. Source

Coming up, as management said on 27 February 2026

Term loan maturity date: The Senior Secured Term Loan matures on the earlier of March 31, 2027 or 90 days after first sales of hydrocarbons. Source
OS&T route in development: Management said the company is pursuing an OS&T strategy as an alternative to the Santa Ynez Pipeline System. Source

Risks management discussed

Regulatory: PHMSA holds exclusive regulatory authority over interstate pipelines, which includes the Santa Ynez Pipeline System. Source
Financial: Short-term debt including paid-in-kind interest stood at $921.6 million at year end. Source

Earlier plans management reported on

Met: The company reported completing the anomaly repair program on Pipeline Segments 324 and 325 as specified by the Consent Decree. Source
Met: The company reported satisfying all conditions to effectiveness of the Second Amendment on November 24, 2025. Source
Not stated: Hydrotests were completed, which management said satisfied the final operational condition to resume transport through segments 324 and 325. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Sable Offshore Corp. Reports Full Year 2025 Results

Houston, February 27, 2026 - Sable Offshore Corp. (“Sable,” or the “Company”)(NYSE: SOC) today announced its full year 2025 operational and financial results.

2025 Operational and Financial Highlights

On May 19, 2025, we announced that (i) as of May 15, 2025, we had restarted production at the Santa Ynez Unit and begun flowing oil production to Las Flores Canyon and (ii) we completed our anomaly repair program on Pipeline Segments 324 and 325 of the Santa Ynez Pipeline System as specified by the Consent Decree.
On May 23, 2025, we closed an upsized underwritten public offering of 10,000,000 shares of Common Stock at a public offering price of $29.50 per share. The gross proceeds from the offering, before deducting discounts and commissions and estimated expenses, were approximately $295.0 million.
On May 28, 2025, we announced that we successfully completed hydrotests of all segments of the Santa Ynez Pipeline System, satisfying the final operational condition to resume petroleum transportation through Pipeline Segments 324 and 325 as outlined in the Consent Decree.
As an alternative to the Santa Ynez Pipeline System, we announced that we are also pursuing an OS&T strategy to provide access to domestic and global markets via shuttle tankers for federal crude oil produced from the Santa Ynez Unit in the Pacific Outer Continental Shelf Area.
On November 10, 2025, we entered into subscription agreements to issue 45,454,546 shares of Common Stock in a private placement to institutional investors at a purchase price of $5.50 per share, raising $250.0 million in gross proceeds.
On November 24, 2025, we satisfied all conditions to effectiveness of the Second Amendment to the Senior Secured Term Loan, thereby extending the maturity date of the Senior Secured Term Loan to the earlier of (i) March 31, 2027 or (ii) the date falling 90 days after first sales of hydrocarbons. The Second Amendment increased the interest rate from ten percent (10%) per annum to fifteen percent (15%) per annum, compounded annually.
On December 17, 2025, PHMSA notified us that it concurred with our determination that the Santa Ynez Pipeline System is an interstate pipeline facility under the Pipeline Safety Act, pursuant to which PHMSA is vested with exclusive regulatory authority over interstate pipelines. In its notification, PHMSA additionally states that it considers the Santa Ynez Pipeline System to be an “active” pipeline according to PHMSA regulations.
On December 23, 2025, PHMSA issued an emergency special permit for segments of the interstate Santa Ynez Pipeline System (specifically Pipeline Segments 324 and 325), related to cathodic protection and seam weld corrosion along Pipeline Segments 324 and 325.
We reported a net loss of $410.2 million, primarily attributable to production restart related operating expenses, general & administrative expenses, and non-cash interest expense, partially offset by a non-cash change in fair value of warrant liabilities.
We ended the year with short-term outstanding debt of $921.6 million, inclusive of paid-in-kind interest, and a cash and cash equivalents balance of $97.7 million.

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

Forward-looking statements notice

The information in this press release includes “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 sales of oil from the Santa Ynez Unit assets, including the potential implementation of an Offshore Storage and Treating Vessel (“OS&T”) strategy, the cost and time required therefor, and production levels once recommenced; availability of future financing; 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, 2025, 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 (www.sableoffshore.com) and on the Securities and Exchange Commission’s website (www.sec.gov). 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

The Santa Ynez Unit assets restarted production in May 2025. Sable has not sold commercial quantities of hydrocarbons since acquisition of the Santa Ynez Unit. The Santa Ynez Unit was shut in during June of 2015 when the only onshore pipeline transporting hydrocarbons produced from the Santa Ynez Unit to market ceased transportation. Since the May 2025 production restart, the oil produced has been transported via pipeline to storage tanks onshore at Sable’s Las Flores Canyon processing facility where it is being stored pending resumed petroleum transportation through the Santa Ynez Pipeline System or an OS&T vessel. There can be no assurance that the necessary approvals will be obtained that would allow the Company to recommence sales.

Contacts
Harrison Breaud
Vice President, Finance & Investor Relations
IR@sableoffshore.com
713-579-8111