Sable Offshore Reports $128.1 Million Net Loss, Sees 22.6% Improvement in Latest Quarter

Sable Offshore Corp. has reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company, which operates in the oil and gas sector, recorded a net loss of $128.1 million for the quarter, a decrease from a loss of $165.4 million in the same period last year, marking a 22.6% improvement. Total operating expenses surged to $128.9 million, up 107.1% from $62.2 million a year earlier, primarily driven by increased operations and maintenance costs associated with the restart of production efforts.

The company’s total assets increased to $1.77 billion as of June 30, 2025, compared to $1.58 billion at the end of 2024. This growth was largely attributed to the acquisition of oil and gas properties, which rose to $1.43 billion from $1.19 billion. However, total liabilities also increased significantly, reaching $1.33 billion, primarily due to the establishment of a Senior Secured Term Loan of $875.6 million, which was classified as a short-term obligation following the restart of production.

Strategically, Sable Offshore has made notable advancements, including the successful restart of production at the Santa Ynez Unit (SYU) on May 15, 2025, after being shut in since 2015. This milestone is expected to enhance the company’s operational capacity and revenue generation potential. The company also completed a public offering of 10 million shares at $29.50 per share, raising approximately $282.6 million, which will be allocated towards capital expenditures and working capital.

Operationally, Sable Offshore has seen a substantial increase in its workforce, with a 113% rise in operations employee headcount compared to the previous year. The company has also reported a significant increase in maintenance expenses, reflecting its commitment to ensuring operational readiness. As of June 30, 2025, Sable Offshore had unrestricted cash of $247.1 million, although it faces challenges related to regulatory approvals necessary for resuming full production and sales.

Looking ahead, Sable Offshore's management remains cautiously optimistic about its financial outlook, contingent on the successful resumption of production sales and the ability to refinance its Senior Secured Term Loan by January 10, 2026. The company acknowledges the potential for further capital needs and the necessity of securing additional funding to support its operational and strategic objectives.