Investing.com
Published May 28, 2025 06:37AM ET
HOUSTON - Sable Offshore Corp. (SOC), a company specializing in crude petroleum and natural gas trading at $32.93, announced on Monday that it has successfully completed hydrotesting for the final segment of its Onshore Pipeline, consisting of Line 324 and Line 325. The company's stock has shown remarkable strength, gaining nearly 120% over the past year, according to InvestingPro analysis reveals ongoing profitability challenges, with analysts projecting continued losses for the current fiscal year.
The hydrotest, a critical safety procedure that tests the pipeline for strength and leaks by filling it with water at high pressure, was conducted on May 27, 2025. The successful completion of the test indicates that the integrity of the pipeline is intact and it is ready for operation. The company's stock is currently trading near its 52-week high of $35, reflecting investor optimism about this operational milestone.
The Onshore Pipeline's restart is a significant milestone for Sable Offshore Corp., which had been working towards fulfilling the conditions of the Consent Decree. The company's latest filing with the Securities and Exchange Commission (SEC) confirms that all necessary repairs and testing have been conducted to ensure safe pipeline operations. With a market capitalization of $3.27 billion and operating with a moderate debt level, the company appears positioned for this operational transition, though InvestingPro data suggests the stock is currently trading above its Fair Value.
The 8-K filing, submitted on May 28, 2025, also includes the company's financial statements and exhibits, among them the Cover Page Interactive Data File, which is embedded within the Inline XBRL document.
This announcement is expected to have a positive impact on the company's operations, as the Onshore Pipeline is a crucial asset for Sable Offshore Corp. The company, formerly known as Flame Acquisition Corp., is headquartered in Houston, Texas, and is incorporated in Delaware. It is listed on the New York Stock Exchange under the trading symbol SOC.
The information in this article is based on a press release statement from Sable Offshore Corp. and the details provided in their SEC filing.
In other recent news, Sable Offshore Corp. has launched a $200 million public stock offering, with an option for underwriters to purchase an additional $30 million in stock. The proceeds are intended for capital expenditures and general corporate purposes, though the completion of the offering is subject to market conditions. Benchmark analysts have increased their price target for Sable Offshore to $47.00, maintaining a Buy rating, as the company nears commercial production with improved production guidance. The anticipated restart of oil production at the Santa Ynez Unit has been a key driver for this optimism, with stronger-than-expected well test results reported. Sable Offshore has also doubled its production estimates for the second half of 2025, projecting 40,000-50,000 barrels of oil equivalent per day, and reduced its lease operating expenses. TD Cowen analysts have raised their price target to $40.00, also maintaining a Buy rating, citing the successful restart of production and completion of pipeline repairs. The company plans to initiate production from additional wells on its platforms in the coming months, further bolstering its production capacity. Investors are closely monitoring these developments as Sable Offshore moves towards a period of increased production and operational efficiency.
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Written By: Investing.com
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