Sable Offshore Corp. completed a private placement of approximately 45.5 million shares at $5.50 each, raising roughly $250 million in gross proceeds. The offering is intended to strengthen the company’s balance sheet and fund ongoing operations in its flagship Santa Ynez Unit project.
The financing comes at a time when Sable’s financial position is strained: the company reported a net loss of $128.1 million in the second quarter of 2025, a total debt burden of $894 million, and a current ratio of 0.29. The capital infusion is designed to address the immediate liquidity gap and support the company’s ability to meet short‑term obligations.
The private placement also satisfies a key condition of the Senior Secured Term Loan amendment that Sable entered into with Exxon Mobil on November 3, 2025. The amendment increased the loan’s interest rate to 15% and required the company to raise at least $225 million in new equity. By completing the placement, Sable meets the equity contribution requirement and avoids potential default on the amended loan.
Operationally, Sable is focused on restarting production at the Santa Ynez Unit, where oil began flowing from Platform Harmony into storage in the second quarter. The company estimates it will need about $1.7 billion to implement a proposed floating storage strategy, and the new capital provides a short‑term buffer while the company pursues longer‑term development and financing plans.
Management has not issued a direct statement on the placement, but the company’s recent conference call on November 3 highlighted the importance of securing liquidity to support the Santa Ynez project and to meet debt obligations. The placement is a critical step in maintaining operational momentum and preserving the company’s ability to execute its development strategy.
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