Sable Offshore (SOC) Q2 2026 earnings summary

Executive summary

• Oil sales resumed in March 2026 under a federal DPA order, with Platform Heritage restarting in April 2026 and oil sales exit rate reaching 40,000 bpd by Q2 2026, generating $138.0 million in revenue for the first half.

• Major refinancing in July 2026 included $345 million in convertible notes, $675 million in new term loans, and $107–$115 million in equity, repaying prior debt and improving liquidity.

• Achieved $9.4 million in positive operating cash flow in Q2 2026, the first since inception.

• Ongoing restoration at Platform Hondo, with production expected to commence by September 2026.

• Legal and regulatory challenges in California and federal courts create operational uncertainty and potential for increased compliance costs.

Financial highlights

• Revenue for the six months ended June 30, 2026 was $138.4 million, with a net loss of $261.2 million due to high restart and legal costs.

• Completed $675 million Senior Secured Term Loan B (maturing Dec 2028) and $345 million convertible senior unsecured notes (maturing July 2031, 6.5% coupon, $4/share conversion price).

• Projected midpoint of $152 million unlevered free cash flow for H2 2026 and over $500 million into 2027 at $75 Brent.

• Operating expenses rose 72% year-over-year to $324.0 million, driven by restart and commissioning costs.

• Incurred $18.5 million in non-recurring demurrage charges due to refinery constraints.

Outlook and guidance

• All 77 production wells at Platforms Harmony and Heritage expected online in Q3 2026; Platform Hondo to commence production in September 2026.

• FY 2027 guidance reflects normalization of fully ramped operations, with net average daily sales expected at 45,000 Boe/d.

• Capital expenditures capped at $100 million per year for 2027 and 2028 under current loan terms, with 2026 capex projected at $148.5 million.

• Costless collar hedges in place, covering up to 28 mbo/d through 2028, with $65 floor and $89.39 ceiling for H2 2026.

• Plans to implement shareholder returns after balance sheet optimization and refinancing.