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Get filing alertsSable Offshore reports first profitable quarter with $137M revenue, completes $1.1B refinancing
Filed August 10, 2026 · Period ending August 10, 2026 · ~2 min read
Key Changes
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high
Generated $137.1M revenue and $9.4M operating cash flow in Q2 2026, the company's first profitable quarter since inception, with production ramping from entry to 40,000 net barrels/day exit rate (149% growth).
Exhibit 99.1 view on EDGAR → -
high
Completed $1.135B refinancing in July 2026: $675M term loan (15% coupon, Dec 2028 maturity with quarterly amortization and 100% cash sweep), $345M convertible notes (6.5% coupon, $4.00 conversion price, July 2031 maturity), and $115M equity at $3.08/share.
Exhibit 99.1 view on EDGAR → -
high
Incurred $18.5M non-recurring demurrage charges in Q2 2026 as California refineries struggled to accommodate sudden Pacific OCS crude influx; faced temporary 40,000 gross barrel/day throughput constraint through mid-August.
Exhibit 99.1 view on EDGAR → -
medium
Reduced 2H 2026 capex guidance midpoint 41% to $85M to optimize cash flow and accelerate debt repayment; implemented hedging program with $65/barrel Brent floors covering 26,000-29,000 barrels/day in 2H 2026.
Exhibit 99.1 view on EDGAR → -
high
Expects to bring all 77 wells at Platforms Harmony and Heritage online in Q3 2026 and restart Platform Hondo in September; guides 2H 2026 net sales at 40,000-45,000 barrels/day and FY 2027 at 42,500-47,500 barrels/day.
Exhibit 99.1 view on EDGAR →
Summary
Sable Offshore reached a major operational milestone in Q2 2026, generating its first profitable quarter with $137.1 million in revenue and $9.4 million in operating cash flow. Production ramped sharply from entry to a 40,000 net barrel per day exit rate, representing 149% quarter-over-quarter growth as the company brought Platforms Harmony and Heritage online.
The company completed a comprehensive $1.135 billion refinancing in July 2026, replacing its prior term loan with a new capital structure that extends the nearest debt maturity to end-2028 but carries a high 15% coupon and aggressive amortization terms including a 100% excess cash flow sweep.
The ramp faced near-term friction as California refineries were unable to plan in advance for the sudden influx of Pacific OCS crude following the Defense Production Act Order, forcing displacement of imported cargos and resulting in $18.5 million of non-recurring demurrage charges. Downstream partners temporarily constrained throughput to 40,000 gross barrels per day through mid-August, with the constraint expected to ease as refineries adjust their crude slate in September. The company cut 2H 2026 capex 41% to $85 million to prioritize debt repayment and implemented a hedging program with $65 per barrel Brent floors. With Platform Hondo expected online in September and all 77 wells at the first two platforms coming online in Q3, Sable is guiding 2H 2026 net sales at 40,000-45,000 barrels per day and projects operating costs to decline sharply in 2027 as production scales.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
Sable Offshore posted new investor presentation materials on its website for use at conferences and investor meetings.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
On August 10, 2026, the Company posted new investor presentation materials on its website, www.sableoffshore.com. The presentation materials are attached hereto as Exhibit 99.2 and incorporated herein by reference. These materials may also be used by the Company at investor conferences, or at one or more presentations with analysts, investors or other stakeholders.
Sable Offshore published updated investor presentation materials on its website. The materials are attached as Exhibit 99.2 and may be used at investor conferences and presentations with analysts, investors, or other stakeholders. This is a routine disclosure under Regulation FD to ensure fair dissemination of company information.
Event · Exhibit 99.1
Added in current filing · view on EDGAR → · paraphrased
Reduced 2H 2026E midpoint capex by 41% to $85 million. Planned capex reductions are intended to optimize cash flow and accelerate debt amortization. ... Commenced commodity hedging program with $65/Bbl Brent floor prices and fulfilled post-closing requirements of the TLB.
Sable reduced its 2H 2026 capex guidance midpoint by 41% to $85 million to optimize cash flow and accelerate debt repayment. The company initiated a commodity hedging program with $65/barrel Brent floor prices covering 28,000 barrels per day in 2H 2026, 25,000 barrels per day in 2027, and 21,000 barrels per day in 2028.
Event · Exhibit 99.2
Sable Offshore refinanced $995M debt with $675M Term Loan B and $345M convertible notes, issued $115M equity, and provided 2H26/FY27 production guidance.
Added in current filing · view on EDGAR → · paraphrased
In July, Sable closed on a series of transactions to refinance the previous Senior Secured Term Loan that had been in place since Sable's inception ... New Term Loan B Facility $675 ... New Convertible Notes 345 ... New Common Equity 115 ... Repay EM Term Loan $995
Sable completed a refinancing in July 2026, issuing a $675 million Senior Secured Term Loan B (15.0% coupon, 12/15/28 maturity), $345 million Convertible Senior Unsecured Notes (6.5% coupon, 7/1/2031 maturity, $4.00/share conversion price), and $115 million in common equity ($3.08/share, ~37.3 million shares) to repay the prior $995 million EM Senior Secured Term Loan. The new Term Loan B carries mandatory quarterly amortization and a 100% excess cash flow sweep, with early takeout incentivized via exit fees. The refinancing extended the nearest maturity to end-2028 and is described as a bridge to an optimized capital structure.
Added in current filing · view on EDGAR → · paraphrased
2H 2026E ... Net Average Daily Sales (Boe/d) 40,000 ‒ 45,000 ... Lease Operating Expense $17.00 ‒ $21.00 ... Cash General & Administrative $6.00 ‒ $9.00 ... Total Capex $75 ‒ $95 ... FY 2027E ... Net Average Daily Sales (Boe/d) 42,500 ‒ 47,500 ... Lease Operating Expense $9.00 ‒ $12.00 ... Cash General & Administrative $3.50 ‒ $6.50 ... Total Capex $80 ‒ $100
Sable provided updated financial guidance for the second half of 2026 and full-year 2027. Net average daily sales are projected at 40,000–45,000 barrels of oil equivalent per day (Boe/d) in 2H 2026 and 42,500–47,500 Boe/d in FY 2027, with production approximately 100% oil. Lease operating expense is expected to decline from $17–$21 per net Boe in 2H 2026 to $9–$66 in FY 2027, while cash G&A is projected to fall from $6–$9 per net Boe to $3.50–$6.50. Total capital expenditures are estimated at $75–$95 million in 2H 2026 and $80–$100 million in FY 2027, focused on low-cost perforation additions and well optimization.
Added in current filing · view on EDGAR → · paraphrased
Commenced commodity hedging program and fulfilled post-closing requirements of the New Senior Secured Term Loan B facility ... Costless Collars ... 3Q 2026 ... Average Volume (Bbl/d) ~26,000 ... Floor ($/Bbl) $65.00 ... Weighted Average Ceiling ($/Bbl) $89.39 ... 4Q 2026 ... Average Volume (Bbl/d) ~29,000 ... Floor ($/Bbl) $65.00 ... Weighted Average Ceiling ($/Bbl) $89.39 ... FY 2027 ... Average Volume (Bbl/d) ~25,000 ... Floor ($/Bbl) $65.00 ... Weighted Average Ceiling ($/Bbl) $80.00 ... FY 2028 ... Average Volume (Bbl/d) ~21,000 ... Floor ($/Bbl) $65.00 ... Weighted Average Ceiling ($/Bbl) $73.17
Sable implemented a commodity hedging program using costless collars with $65 per barrel floors for Brent crude oil. Hedged volumes average approximately 26,000 barrels per day in Q3 2026, 29,000 in Q4 2026, 25,000 in FY 2027, and 21,000 in FY 2028, representing 100% of audited proved developed producing reserves and 42–67% of management forecast net volumes. The collars allow participation in elevated Brent pricing while limiting downside to $65 per barrel. Additional hedge volumes are anticipated as production ramps up.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 11, 2026 · How we verify