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Sable Offshore Corp. (SOC+2.70%) has submitted its annual report on Form 10-K for the fiscal year ended December 31, 2024 filing.
The filing includes details on the company's business operations, financial condition, and results of operations. Sable Offshore Corp., formerly known as Flame Acquisition Corp., completed its business combination with Sable Offshore Holdings LLC and Sable Offshore Corp. on February 14, 2024.
The company reported a net loss of $617.3 million for the period from February 14, 2024, to December 31, 2024. The loss was primarily driven by general and administrative expenses, changes in the fair value of warrant liabilities, and interest expenses.
Sable Offshore Corp. is focused on restarting production of the Santa Ynez Unit (SYU) Assets, which have been shut in since 2015. The company estimates remaining start-up expenses of approximately $152.0 million to restart production in the second quarter of 2025.
The company raised $440.2 million in gross proceeds from a private investment in public equity (PIPE) investment in connection with the business combination and an additional $150.0 million from a second PIPE investment in September 2024.
Sable Offshore Corp. has also addressed capital funding needs with proceeds from the exercise of warrants, raising approximately $183.5 million in cash.
The company faces uncertainties related to obtaining the remaining regulatory approvals necessary to restart production, along with the timing of ongoing construction repair efforts, which raise substantial doubt about its ability to continue as a going concern.
Sable Offshore Corp. has identified material weaknesses in its internal control over financial reporting and is taking steps to address these issues.
The company is subject to various legal proceedings, including a settlement agreement related to the Grey Fox Matter and litigation involving the Bureau of Safety and Environmental Enforcement (BSEE).
Sable Offshore Corp. continues to focus on its efforts to restart production and generate positive cash flow from its operations.
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. annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.