Unraveling the Truth: Sable Offshore Corp. Addresses Misinformation
In a recent development, Sable Offshore Corp. ("Sable" or the "Company") has taken a stand against a report published by Hunterbrook Media LLC ("Hunterbrook"), dated November 14, 2025. Sable aims to clarify and rectify certain misstatements presented in the report, shedding light on the facts behind the scenes.
Accounts Payable: Setting the Record Straight
The report claims that Sable disclosed $163 million in accounts payable as of September 30, 2025, in its Q3 10-Q. However, Sable's balance sheet, as presented in the recently filed Form 10-Q (the "Q3 10-Q"), tells a different story. On page 14 of the Q3 10-Q, it is clearly stated that Sable's accounts payable balance as of September 30, 2025, was approximately $53 million. The discrepancy arises from Hunterbrook's inclusion of accrued liabilities alongside accounts payable. Accrued liabilities encompass certain discretionary and non-cash items, which, when separated, paint a clearer financial picture.
With the successful sale of common stock in a private placement to institutional investors, Sable believes it has secured the necessary liquidity to pursue its objectives. This includes a comprehensive debt refinancing planned for the first quarter of 2026, a move that demonstrates Sable's commitment to financial stability and growth.
Pilgrim Global Entities' Ownership: A Clear Picture
The report also delves into speculation regarding Pilgrim's ownership and intentions. Sable clarifies that Pilgrim maintains substantial ownership in the company, as reflected in its regulatory filings. Furthermore, Pilgrim played a significant role in Sable's recent sale of common equity in a private placement to institutional investors, solidifying its position as a key stakeholder.
Bonding Requirement: Unraveling the Details
Regarding Hunterbrook's statement about Sable's bonding obligation to ExxonMobil, Sable provides a comprehensive clarification. The report quotes a section from Sable's recently filed Q3 10-Q, which details an extension to its bonding obligation for plugging and abandonment obligations to ExxonMobil. This extension is outlined in Sable's Fifth Amendment to its Purchase and Sale Agreement ("PSA") with Exxon Mobil Corporation ("Exxon").
The $350 million bonding obligation, referred to as the P&A Financial Security in the PSA, is not a new development. It was first disclosed by Sable on its Form 8-K dated February 14, 2024, and has been mentioned in multiple filings since, including the Company's 2024 Annual Report filed on March 17, 2025. This bonding obligation relates to Sable's commitment to plug and abandon wells at the end of the Santa Ynez Unit's operational life. The original PSA required Sable to post the bond 150 days after the resumption of production from the wells on the SYU Unit, which occurred on May 15, 2025. The 5th Amendment to the PSA, effective October 14, 2025, extended the P&A Financial Security obligation to a date three business days after the ExxonMobil Senior Secured Term Loan Maturity Date, which, following an extension, will be the earlier of March 31, 2027, or 90 days after the first sales of Hydrocarbons (as defined in the Senior Secured Term Loan). It's important to note that under certain circumstances, ExxonMobil may seek to increase the bonding amount to $500 million.
About Sable: A Focused Approach
Sable Offshore Corp. is an independent oil and gas company headquartered in Houston, Texas. The company's primary focus is on the responsible development of the Santa Ynez Unit in federal waters offshore California. With a team of experienced professionals, Sable has a proven track record of safely operating in California's unique environment.
Forward-Looking Statements: A Note of Caution
The information presented in this press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, identified by words such as "could," "should," "will," "may," "believe," "anticipate," "intend," and others, are based on current beliefs and expectations of Sable's management. However, actual results may differ significantly due to various risks and uncertainties. Factors that could impact Sable's actual results include the ability to recommence sales from the Santa Ynez Unit assets, global economic conditions, increased operating costs, equipment and personnel availability, environmental and regulatory challenges, litigation risks, and privacy concerns. For a comprehensive understanding of these factors, readers are encouraged to refer to Sable's Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, which are available on Sable's website (www.sableoffshore.com) and the Securities and Exchange Commission's website (www.sec.gov). Sable undertakes no obligation to update these forward-looking statements, except as required by applicable law.
Disclaimers: A Word of Caution
The Santa Ynez Unit assets discussed in this press release restarted production in May 2025. However, it's important to note that these assets have not sold commercial quantities of hydrocarbons since they were shut in during June 2015 due to the cessation of transportation through the only onshore pipeline. Since the production restart in May 2025, the oil produced has been transported via pipeline to storage tanks onshore at Sable's Las Flores Canyon processing facility. There is no guarantee that the necessary approvals will be obtained to recommence transportation through the Las Flores Pipeline System or to utilize an Offshore Storage and Treating Vessel, which would enable the Santa Ynez Unit assets to resume sales.
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