NEW YORK, June 30, 2026, 14:07 EDT
- Sable Offshore dropped 48.5% to $3.59 in recent trading. The Energy Select Sector SPDR ETF eased 0.3%, while SPY gained 0.7%.
- Sable Offshore Corp. is looking to raise $100 million with a common stock sale and $300 million from 2031 convertible notes. Both deals are linked to a new $675 million term loan at 15%.
- A $100 million stock sale at $3.59 works out to roughly 27.9 million shares before discounts. That’s about 18.5% of the share count as of March 31.
Sable Offshore Corp. NYSE:SOC shares plunged nearly 50% Tuesday afternoon as the offshore oil group rolled out a refinancing plan that would leave a sizable debt load in place and could bring a big slug of new shares to market.
Shares last traded at $3.59, off $3.38, or 48.5%. About 41.9 million shares had changed hands. The low for the session was $3.18. Earlier high was $7.06.
The heart of the matter is the share math on the offering. Sable’s latest prospectus listed a $6.97 share price as of June 29. That would mean selling 14.3 million shares to get $100 million before discounts. If the stock price is $3.59, raising $100 million would need 27.9 million shares. There’s no price on the offering yet.
| Equity-raise math | June 29 reference price | Tuesday recent quote |
|---|---|---|
| Share price used | $6.97 | $3.59 |
| Shares implied by $100 mln sale, before discounts | 14.3 mln | 27.9 mln |
| Implied issue vs 150.3 mln March 31 shares | 9.5% | 18.5% |
The $3.38 fall in the share price cut about $508 million from the company’s equity value, based on the 150.3 million shares outstanding as of March 31. That’s higher than the planned $400 million in new equity and notes, and also more than the $460 million total if banks exercise all over-allotment options.
Sable plans to offer $100 million in common stock and $300 million in convertible senior notes due 2031. The company also looks to give underwriters 30-day options for up to $15 million more in stock and $45 million more in notes. J.P. Morgan, part of JPMorgan Chase & Co. NYSE:JPM, is running the books.
Sable said it plans to use the proceeds and a new senior secured term loan to pay off its current senior secured term loan from Exxon Mobil Corp. NYSE:XOM, as well as pay fees and for general corporate purposes. The company said the equity offering, convertible note sale and new term loan are all cross-conditioned, meaning none will close unless all close.
The SEC filing shows Sable is locking in tougher terms. The company is looking for a $675 million Term Loan B at 15.00% due Dec. 15, 2028, and a $500 million senior secured revolver with a zero initial borrowing base. After these transactions, adjusted debt would come to $975.0 million, up from $956.3 million as of March 31.
| Market marker | Recent price | Move |
|---|---|---|
| Sable Offshore Corp. NYSE:SOC | $3.59 | -48.5% |
| State Street Energy Select Sector SPDR ETF (NYSEARCA:XLE) | $53.42 | -0.3% |
| United States Oil Fund (NYSEARCA:USO) | $105.80 | -1.2% |
| Exxon Mobil Corp. NYSE:XOM | $136.32 | +0.2% |
| SPDR S&P 500 ETF Trust (NYSEARCA:SPY) | $746.48 | +0.7% |
Sable slipped more than the broader oil trade. This wasn’t only about weakness in energy stocks, but about financing. XLE dropped less than 1%, USO fell 1.2%. Exxon edged up, and SPY was up 0.7% around the same time.
Sable got more time from Exxon. On June 22, it paid a $30.0 million amendment fee. Exxon suspended and waived a $25.0 million minimum liquidity covenant. The company also got the loan maturity pushed out to the earlier of July 24, 2026, or if there’s a default, to when the loan accelerates.
Recent operating data still supports the stock’s value. Sable said 52 out of 77 finished wells at Harmony and Heritage were online as of June 18, delivering about 43,000 gross barrels of oil a day. Compressor limits kept some wells down since gas output was lower than planned. The company expects Platform Hondo to begin production in the third quarter.
Sable got the Santa Ynez assets from Exxon through a 2024 SPAC deal. The deal package has 16 federal leases, three offshore platforms, and the Santa Ynez Pipeline System. Sable common stock started trading on the NYSE under the ticker SOC on Feb. 15, 2024.
Sable started selling oil in March using the Santa Ynez Pipeline System to supply Chevron Corp. NYSE:CVX. Chairman and Chief Executive Jim Flores called it “American oil from American soil.” Sable said terms on the notes, including interest rate and initial conversion rate, will be set at pricing. Business Wire
