Sable Offshore Corp. (SOC) Quarterly 10-Q Report

The report was filed on November 14, 2024

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Sable Offshore Corp. (SOC-15.11%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

The filing includes financial statements for the quarter, showing no revenue due to the shut-in of the Santa Ynez Unit (SYU) assets. The company is focused on restarting production.

Operating expenses for the quarter were $54.6 million, an increase from $22.5 million in the same quarter the previous year. This increase is attributed to maintenance and operational readiness activities.

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General and administrative expenses increased significantly to $26.2 million from $3.0 million, primarily due to stock-based compensation expenses and costs associated with the Business Combination.

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The company reported a net loss of $255.6 million for the quarter, compared to a net loss of $23.1 million in the previous year. The increase in loss is mainly due to changes in the fair value of warrant liabilities and interest expenses.

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Sable Offshore Corp. raised $440.2 million from a private placement in connection with the Business Combination and an additional $150.0 million from a subsequent private placement.

As of September 30, 2024, the company had unrestricted cash of $288.2 million and an accumulated deficit of $682.1 million.

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The company acknowledges substantial doubt about its ability to continue as a going concern due to the regulatory approvals needed to restart production and the timing of ongoing construction repair efforts.

Sable Offshore Corp. is an emerging growth company and is subject to certain reduced public company reporting requirements.

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The filing also details various legal proceedings, including a complaint filed by environmental groups challenging lease extensions for the Santa Ynez Unit.

The company has entered into an amendment to its Senior Secured Term Loan, adding $4.6 million of additional principal related to vendor contract termination costs.

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Sable Offshore Corp. continues to focus on restarting production of its SYU assets and securing necessary regulatory approvals.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sable Offshore Corp. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.