Sable Offshore (SOC) Q3 2025 earnings summary

Executive summary

• Achieved first oil production restart at SYU in May 2025 after being shut in since 2015; oil is being stored pending regulatory approval for sales.

• Reported a net loss of $110.4M for Q3 2025, mainly due to restart-related operating expenses and non-cash interest expense, partially offset by a non-cash gain in warrant liabilities.

• Raised significant capital through PIPE investments and a public offering, with $250M from a Third PIPE Investment in November 2025.

• Facing substantial regulatory, legal, and permitting challenges, including ongoing litigation and new California laws affecting pipeline restart.

Financial highlights

• Net loss of $110.4M for Q3 2025 and $348.0M for the nine months ended September 30, 2025 (Successor).

• Revenue of $79.4M for Q3 2025, reflecting initial oil production but no sales recognized.

• Operations and maintenance expenses increased 210% year-over-year to $79.4M in Q3 2025 due to restart efforts.

• General and administrative expenses rose 40% year-over-year to $36.7M in Q3 2025, driven by higher compensation and legal costs.

• Cash and cash equivalents at $41.6M as of September 30, 2025; total debt at $896.6M, primarily from a Senior Secured Term Loan.

Outlook and guidance

• Management expects sales of production to commence in Q4 2026, contingent on regulatory approvals for either the Onshore Pipeline or OS&T strategy.

• Estimated $450M in additional start-up expenses required for the OS&T strategy to enable offshore oil sales.

• Substantial doubt exists about the ability to continue as a going concern due to regulatory, legal, and financing uncertainties.