Sable Offshore (NYSE:SOC) Posts Quarterly Earnings Results, Misses Estimates By $1.21 EPS

Sable Offshore (NYSE:SOC) announced its quarterly earnings data on Monday. The company reported ($1.37) earnings per share for the quarter, missing the consensus estimate of ($0.16) by ($1.21), FiscalAI reports. The business had revenue of $154.37 million during the quarter, compared to analysts’ expectations of $157.47 million.

Here are the key takeaways from Sable Offshore’s conference call:

• In its second full quarter of oil sales, Sable reported a nearly 30% quarter-over-quarter increase in volume sold and 13% revenue growth. Management said Harmony and Heritage wells continue to perform strongly, with PERF-ADD operations adding an average of more than 700 barrels per day per operation.
• A downstream purchasing disruption left Sable with a significant October sales shortfall. The company is negotiating a bulk sale of up to 1.3 million barrels, but had not finalized the transaction; management said proceeds and timing will depend on price and buyer terms.
• Sable estimated fourth-quarter cash spending of $165 million to $175 million, including debt payments, against about $38 million of cash on hand. Management expects November sales and a potential bulk sale to address the gap, with a $100 million unsecured borrowing basket and a possible PIPE as additional options.
• Management said all four Los Angeles-area refineries are now taking Sable crude, broadening its customer base after the disruption. Hondo’s safety inspection and restart were scheduled for November, with the company targeting production from its 15 wells in December; regulatory approval remains a key dependency.
• Management argued that stable pressures and low gas production could support higher long-term oil recovery, potentially raising its internal recovery estimate from 15% to 30%. These are management’s projections, and the company said a fuller audited reserve picture may take until the end of next year.

Sable Offshore Stock Up 7.5%

Shares of Sable Offshore stock traded up $0.06 during trading on Wednesday, reaching $0.81. 17,573,194 shares of the company traded hands, compared to its average volume of 9,242,939. The company has a 50 day moving average price of $3.57 and a 200-day moving average price of $8.47. Sable Offshore has a 1-year low of $0.51 and a 1-year high of $19.25. The firm has a market capitalization of $154.84 million, a PE ratio of -0.23 and a beta of -0.09. The company has a debt-to-equity ratio of 1.85, a current ratio of 0.24 and a quick ratio of 0.18.

Analysts Set New Price Targets

SOC has been the subject of a number of recent analyst reports. Weiss Ratings downgraded shares of Sable Offshore from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday. Jefferies Financial Group set a $9.00 price target on Sable Offshore in a research note on Wednesday, August 12th. Stifel Nicolaus assumed coverage on Sable Offshore in a research note on Thursday, September 10th. They set a “buy” rating and a $8.00 target price for the company. William Blair started coverage on Sable Offshore in a research note on Monday, October 5th. They issued an “outperform” rating for the company. Finally, Zacks Research upgraded shares of Sable Offshore from a “strong sell” rating to a “hold” rating in a research report on Thursday, October 15th. Six research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $11.40.

Sable Offshore Company Profile

Sable Offshore Corp. is an independent energy company focused on developing and operating offshore oil and natural gas assets in the Santa Barbara Channel off the coast of California. Its holdings include the Santa Ynez Unit, associated offshore platforms, and infrastructure used to transport and process production. The company’s operations center on restarting and managing these assets, which were previously owned by ExxonMobil. Sable completed its acquisition of the Santa Ynez assets in 2024. Sable is led by Chief Executive Officer James Flores and focuses its activities on California’s offshore energy sector.