Sable Offshore (SOC) Q1 2026 earnings summary

Executive summary

• Resumed oil transportation and initiated first oil sales from the Santa Ynez Unit (SYU) via the Santa Ynez Pipeline System (SYPS) under a Defense Production Act (DPA) order in March 2026.

• Issued shares through an at-the-market equity offering, raising $72.4 million in Q1 and $95.0 million in gross proceeds overall to support liquidity.

• Reported a net loss of $197.0 million in Q1 2026, mainly due to higher operating, administrative, and non-cash expenses.

• Ongoing legal and regulatory challenges with California agencies, including litigation over pipeline operations, permitting, and environmental compliance.

Financial highlights

• Revenue for Q1 2026 was $1.3 million from 13,380 barrels of oil sold, compared to zero revenue in Q1 2025.

• Net loss widened to $197.0 million in Q1 2026, driven by higher operating, legal, and non-cash costs.

• Non-cash interest expense totaled $34.7 million; non-cash loss on warrant liabilities was $44.2 million.

• Cash and cash equivalents declined to $52.2 million as of March 31, 2026, from $97.7 million at year-end 2025.

• Total debt increased to $956.3 million, with the Senior Secured Term Loan interest rate raised to 15% per annum.

Outlook and guidance

• Plans to bring all 74 production wells online by Q2 2026, targeting average production of 700 barrels per day per well.

• Platform Hondo expected to commence production in June 2026.

• Debt refinancing of Senior Secured Term Loan anticipated to close in Q2 2026, before its accelerated maturity on June 26, 2026.

• Evaluating a commodity hedging program to stabilize cash flows.

• Management cautions that actual results may differ materially due to significant risks and uncertainties.