Highlights Operational Progress and Strengthened Financial Position in 2025
Sable Offshore Corp. has reported its full year 2025 operational and financial results, marking a transformative period for the Houston-based independent oil and gas company. The year was characterized by significant operational milestones, major capital-raising initiatives, regulatory developments, and strategic adjustments designed to position the company for long-term stability and growth as it advances development of the Santa Ynez Unit in federal waters offshore California.
Operational Milestones and Production Restart
A defining moment in 2025 came on May 19, when Sable announced that, as of May 15, it had successfully restarted production at the Santa Ynez Unit. The company also confirmed that oil production had begun flowing to Las Flores Canyon, restoring a critical component of its offshore-to-onshore infrastructure network. This milestone represented a major operational achievement following extensive preparations, inspections, and repairs.
Central to the restart effort was the completion of Sable’s anomaly repair program on Pipeline Segments 324 and 325 of the Santa Ynez Pipeline System. These repairs were conducted in accordance with the requirements outlined in a Consent Decree, reflecting the company’s focus on compliance, safety, and operational integrity. By late May, Sable further strengthened its position when it successfully completed hydrotests across all segments of the Santa Ynez Pipeline System. Announced on May 28, this achievement satisfied the final operational condition required to resume petroleum transportation through Pipeline Segments 324 and 325.
Together, the restart of production, completion of anomaly repairs, and successful hydrotesting signaled that the Santa Ynez infrastructure had met rigorous operational and safety benchmarks. These developments were critical steps in restoring the company’s production profile and reinforcing stakeholder confidence.
Alternative Market Access Strategy
While advancing the reactivation of the Santa Ynez Pipeline System, Sable also demonstrated strategic flexibility by pursuing an Oil Sales & Transportation (OS&T) strategy. This alternative approach is designed to provide access to both domestic and global markets via shuttle tankers for federal crude oil produced from the Santa Ynez Unit in the Pacific Outer Continental Shelf Area.
The OS&T strategy reflects Sable’s proactive risk management philosophy. By diversifying transportation and market access options, the company aims to reduce dependency on any single infrastructure pathway while maximizing commercial opportunities. The ability to access international markets through shuttle tankers may also enhance pricing optionality and improve long-term revenue resilience.
Capital Raising and Liquidity Initiatives
In parallel with operational progress, Sable undertook substantial capital-raising efforts during 2025 to strengthen its liquidity position and fund its strategic objectives.
On May 23, the company 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 offering generated approximately $295.0 million in gross proceeds before underwriting discounts, commissions, and estimated expenses. The upsized nature of the transaction reflected investor interest and provided meaningful capital support during a pivotal period for the company.
Later in the year, on November 10, Sable entered into subscription agreements with institutional investors to issue 45,454,546 shares of common stock in a private placement at a purchase price of $5.50 per share. This transaction raised an additional $250.0 million in gross proceeds. The private placement underscored the company’s continued access to institutional capital markets, even amid operational and financial challenges.
Combined, these equity offerings provided Sable with significant liquidity to support production restart activities, ongoing infrastructure investments, debt obligations, and general corporate purposes.
Debt Restructuring and Financial Position
On November 24, Sable satisfied all conditions necessary for the effectiveness of the Second Amendment to its Senior Secured Term Loan. This amendment extended the maturity date to the earlier of March 31, 2027, or 90 days following first sales of hydrocarbons. While the extension provided additional runway, it came at a cost: the interest rate on the loan increased from 10% per annum to 15% per annum, compounded annually.
The amendment reflects the company’s efforts to balance liquidity preservation with debt management. Extending the maturity timeline reduces near-term refinancing risk, though the higher interest rate increases the financial burden over time.
At year-end 2025, Sable reported short-term outstanding debt totaling $921.6 million, inclusive of paid-in-kind interest. The company closed the year with $97.7 million in cash and cash equivalents. These figures illustrate both the scale of the company’s capital structure and the importance of sustained operational performance and market access moving forward.
Regulatory Developments and PHMSA Determination
A critical regulatory development occurred on December 17, when the Pipeline and Hazardous Materials Safety Administration (PHMSA) notified Sable that it concurred with the company’s determination that the Santa Ynez Pipeline System qualifies as an interstate pipeline facility under the Pipeline Safety Act. As a result, PHMSA is vested with exclusive regulatory authority over the interstate system.
In its notification, PHMSA also stated that it considers the Santa Ynez Pipeline System to be an “active” pipeline under its regulations. This designation has important compliance and operational implications, clarifying the federal oversight framework governing the system.
Further strengthening the regulatory outlook, on December 23 PHMSA issued an emergency special permit for Pipeline Segments 324 and 325. The permit addressed matters related to cathodic protection and seam weld corrosion along those segments, enabling continued operations under defined safety conditions. These regulatory milestones provided additional clarity and operational certainty as Sable works to sustain production and transportation activities.
Financial Results and Net Loss
Despite significant operational progress, Sable reported a net loss of $410.2 million for full year 2025. The loss was primarily attributable to production restart-related operating expenses, elevated general and administrative costs, and non-cash interest expense associated with its debt structure. These factors were partially offset by a non-cash change in the fair value of warrant liabilities.
The reported net loss reflects the substantial upfront costs associated with restarting complex offshore production and transportation infrastructure. While these expenses weighed heavily on 2025 financial performance, management views many of them as foundational investments intended to support future production and revenue generation.
Corporate Profile and Strategic Outlook
Headquartered in Houston, Texas, Sable Offshore Corp. is focused on responsibly developing the Santa Ynez Unit in federal waters offshore California. The company emphasizes safe operations, regulatory compliance, and environmental stewardship. Its leadership team brings extensive experience operating in California’s complex regulatory and environmental landscape.
Looking ahead, Sable’s strategic priorities include maintaining safe and reliable production at the Santa Ynez Unit, optimizing transportation options through both pipeline and tanker strategies, managing its capital structure, and pursuing long-term value creation for shareholders. The combination of restored production, regulatory clarity, diversified market access, and strengthened liquidity provides a framework for future operational and financial stabilization.
In summary, 2025 was a transformative and challenging year for Sable Offshore Corp. The company achieved major operational milestones, secured substantial capital infusions, navigated regulatory complexities, and addressed debt maturity concerns. While the financial results reflect significant losses tied to restart and financing costs, Sable has laid critical groundwork for renewed production and long-term development of the Santa Ynez Unit.
