Sable Offshore (SOC) Investor update summary

Operational performance and production outlook

• Offshore fields are performing above expectations, with no current decline rates and conservative engineering forecasts being exceeded.

• Platform Hondo is expected to come online by September 1, increasing production capacity.

• Current infrastructure at Las Flores Canyon and pipelines are in good condition, supporting high production rates.

Offtake strategies and marketing options

• The SIFS pipeline, federally authorized, remains the primary route for oil transport to Chevron's El Segundo refinery under the Defense Production Act (DPA).

• If the SIFS pipeline becomes unavailable, the OSNT permit allows for rapid deployment of offshore processing and FPSO vessels, with a $500 million cost and a 10-12 month timeline.

• A buoy marketing strategy could provide significant economic upside, potentially increasing cash flow by $200 million annually at a $125 million implementation cost.

• The buoy strategy depends on securing federal rights of way, possibly via Strategic Petroleum Reserve (SPR) designation, to bypass state permitting challenges.

Strategic Petroleum Reserve (SPR) initiative

• Proposal to establish an SPR at Pentland aims to alleviate refinery stress and pipeline bottlenecks in California.

• The SPR would enable efficient crude movement for all producers and refineries, improving market access and energy security.

• The timeline for SPR designation is expected to be resolved within weeks to a couple of months, with immediate pipeline connections possible this year.

• Congressional appropriations would be required for additional storage construction and oil purchases.