Sable Offshore (SOC) Investor update summary

Asset overview and operational update

• Asset holds 15.5 billion barrels in place, with over 2 billion barrels recoverable and 1.5 billion barrels of remaining reserves, ranking among the largest U.S. fields.

• Production ramped up to 46,000 barrels/day from two platforms, with a third platform (Hondo) expected online by mid-summer, targeting 10,000–15,000 additional barrels/day.

• Pipeline repairs and federal approvals enabled oil transportation and sales to resume, with first sales in five years occurring in March 2026.

• Secondary export outlet via a new buoy and pipeline is planned to provide marketing flexibility and mitigate regulatory risks.

• Heavy oil upside could add up to 1 billion barrels of reserves, requiring future facility upgrades.

Development strategy and capital allocation

• Focus on low-cost reserve replacement through perforation adds (perf adds), costing $0.64 per barrel, maintaining flat reserves over four years.

• 56 perf adds planned through 2029, each adding 1.25 million barrels to PDP; ESP installations deferred until reservoir pressure declines.

• Drilling rigs may be deployed post-2029 to accelerate production growth, depending on refinancing and free cash flow.

• Capital expenditures for 2027–2028 forecasted at $80 million, with $10–15 million for perf adds.

• Shareholder returns, including dividends or buybacks, are prioritized post-refinancing and reserve report update.

Financial position and guidance

• Net leverage currently aligns with long-term target of 1x; robust asset coverage with 2.6x net debt on PDP and 5.8x on 1P reserves.

• Free cash flow guidance: $329 million (2026), $753 million (2027), $633 million (2028), supporting refinancing and future returns.

• Operating costs expected to decline from $20–22/barrel to $9–11/barrel as production scales.

• Hedging strategy to cover 100% of PDP oil production through 2028, using costless collars and deferred premium puts.

• $350 million P&A bond obligation to be managed via surety market or bank letters of credit.