Sable Offshore (SOC) Status Update summary

Strategic shift and project update

• Accelerated adoption of the offshore storage and treating (OS&T) vessel strategy due to ongoing delays in California's approval of the Las Flores pipeline restart.

• OS&T vessel purchase is now the primary plan, with regulatory submissions made to the Bureau of Ocean Energy Management (BOEM) and positive federal engagement.

• The OS&T approach allows for greater marketing flexibility, projected to save approximately $10 per barrel in operating costs compared to the pipeline option, and provides access to Brent pricing and international markets.

• All three platforms (Harmony, Heritage, Hondo) and the POPCO gas plant are expected to be ready for a rapid production ramp-up by Q4 2026.

• The company is actively addressing power generation and gas processing to ensure operational independence from onshore facilities.

Asset overview and operational status

• Santa Ynez Unit (SYU) is a large, oil-weighted offshore resource with three platforms and onshore processing facilities, restarted production in May 2025 after a decade-long shutdown.

• Over 100 infill drilling and step-out opportunities identified, with improved well tests since restart.

• SYU produced over 671 MMBoe between 1981 and 2014, with a low anticipated decline rate of ~8% annually over the next five years.

• Sable holds 100% working interest and 83.6% net revenue interest in 16 federal leases covering ~76,000 acres.

Offtake and development options

• Two main offtake strategies: Option 1 (OS&T) targets first sales in Q4 2026, requiring ~$450M in capital; Option 2 (Las Flores Canyon and Pipeline System) targets first sales in Q4 2025, pending regulatory approvals.

• Pipeline option leverages existing infrastructure, supports local employment, and could increase California's domestic crude supply by ~15%.