Sable Offshore rallies after $250 mln equity raise for Exxon loan

Sable Offshore

10/11/2025 15:07

** Sable Offshore's SOC.N shares rally as much as 34.5% to $7.18 early Mon after co announces $250 mln equity raise. Stock last up 13.9% at $6.08

** Houston, Texas-based oil driller early Mon says it agreed to sell ~45.5 mln shares in private placement to institutional investors at $5.50 for gross proceeds of $250 mln

** It intends to use proceeds for general corporate purposes

** Sable says upon closing, this offering is expected to satisfy the common equity contribution condition of the senior secured term loan amendment it announced a week ago

** On Nov 3, SOC shares sank nearly 31% after co said it would extend a loan with Exxon Mobil XOM.N contingent on raising at least $225 mln of equity

** Jefferies and TD Cowen acting as joint placement agents

** Sable had ~99.5 mln shares outstanding prior to the private placement

** SOC shares on Fri hit a record intraday low of $4.58 before ending session up about 10% at $5.34

** On Oct 14, a California judge ruled against SOC's request to lift the state's cease-and-desist order on repairs it had made to an onshore pipeline system linked to the Santa Ynez project

** SOC shares ended 2024 at $22.90

** Sable went public in Feb 2024 after merger with SPAC Flame Acquisition Corp

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))