Sable Offshore Corp.

Sable Offshore Corp. reported second-quarter earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.21 per share by 76.19%. Revenue came in at $137.13 million, falling short of the consensus by 39.65%. A year earlier, the company posted a loss of $1.10 per share on zero revenues. The stock has lost about 47.3% year-to-date, while the S&P 500 has gained 13.3%.

Kuehn Law, PLLC is investigating whether certain officers and directors of Sable Offshore Corp breached their fiduciary duties to shareholders. The investigation concerns potential self-dealing. Shareholders may be entitled to damages and corporate governance reforms. Long-term SOC stockholders are encouraged to contact Justin Kuehn, Esq. by email at justin@kuehn.law or call (833) 672-0814. The consultation and case are free with no obligation to the shareholder, and Kuehn Law pays all case costs without charging its investor clients.

Jefferies analyst Lloyd Byrne cut Sable Offshore Corp.'s price target from $24 to $11 on July 6, yet the new target still implies an upside potential of more than 180%. The analyst maintained a Buy rating despite recent challenges, including dilution from a convertible notes offering executed amid the company's failure to secure government support. On July 1, Sable Offshore disclosed a public offering of 32,467,533 common shares at $3.08 per share and $300 million principal amount of 6.5% convertible senior notes due 2031, with underwriters given a one-month option to purchase up to an additional 4,870,129 shares and $45 million in notes. The notes are senior unsecured obligations with interest payable semi-annually, and the initial conversion rate is 249.7502 shares per $1,000 face value, implying a conversion price of about $4 per share, a roughly 30% premium to the public offering price.

Sable Offshore Corp. completed a US$300 million offering of 6.5% convertible notes due 2031 and a US$100 million follow-on common stock sale at US$3.08 per share, aimed at refinancing its senior secured term loan with Exxon Mobil. The package of new unsecured convertible debt, common equity issuance, and amended loan terms materially reshapes the company's capital structure and funding flexibility. The refinancing eases near-term pressure but deepens dilution and adds another layer of unsecured, potentially dilutive debt. The biggest near-term risk has shifted toward execution on this refinancing plan and managing a levered balance sheet after an over 80% one-year share price decline.

Sable Offshore Corp. has priced concurrent public offerings of 32,467,533 shares of common stock at $3.08 per share and $300 million aggregate principal amount of 6.5% convertible senior notes due 2031. The company estimates net proceeds of approximately $92.8 million from the stock offering and $288.8 million from the notes offering, with underwriters granted 30-day options to purchase up to an additional 4,870,129 shares and $45 million in notes to cover over-allotments. The notes, which are senior unsecured obligations, will pay interest semi-annually and have an initial conversion rate of 249.7502 shares per $1,000 principal amount, representing a conversion price of about $4.00 per share, a 30% premium over the stock offering price. Sable intends to use the combined proceeds, along with a new senior secured term loan, to repay its existing term loan with Exxon Mobil Corporation and for general corporate purposes, with all three transactions cross-conditioned on each other. J.P. Morgan is acting as sole book-running manager for both offerings, which are expected to settle on July 2, 2026.

JPMorgan Chase is still working to secure investor commitments for a $775 million term loan backing Sable Offshore, even though the debt carries a hefty 15% fixed interest rate. The offering remained in the market on Monday after investment commitments had originally been due Friday, according to people familiar with the matter. The weaker demand stands out in a leveraged-loan market that has generally seen strong appetite. Sable had first sought to raise $1 billion through the term loan, but the deal was later reduced by $225 million amid sluggish demand. The Houston-based oil driller continues to face legal challenges over its right to operate in California, having resumed oil drilling in March after more than a decade of inactivity. The proceeds, along with an unsecured capital markets raise, are intended to refinance a term loan from Exxon Mobil that had been set to mature on June 26; Sable agreed last week to pay Exxon $30 million to extend the due date to July 24, with the extension now expected to run through the end of July. The proposed loan is being offered at 97 cents on the dollar, carries a rare two-and-a-half-year maturity, and includes repayment requirements that could possibly reduce default risk over time.