Sable Offshore Posts First Full Revenue Quarter, Positive Cash Flow, and a 41% Cut to Second-Half Capex
SOC sits 66% above its 52-week low of $2.88.
Summary
Sable Offshore reported its first full quarter of revenue and positive operating cash flow, ramped production to roughly 40,000 net barrels per day, and cut 2026 capex by 41% to accelerate debt reduction. Updated 2027 guidance points to over $500 million in unlevered free cash flow.
Key Events · Earnings and Guidance · SOC
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First Full Quarter of Revenue and Positive Cash Flow
Q2 2026 revenue of $137.1 million and $9.4 million in positive operating cash flow—the first full quarter of revenue generation and positive operating cash flow since inception.
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Production Ramped 149% During Q2
Average daily net sales of roughly 21,000 barrels of oil per day, exiting the quarter at about 40,000 net barrels per day—a 149% entry-to-exit growth rate. July preliminary sales were approximately 38,000 gross barrels per day, and August to date is around 42,000.
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2H 2026 Capex Slashed 41% to $85M Midpoint
Planned capex reductions are intended to optimize cash flow and accelerate debt amortization. FY 2027E capex is guided to $80–$100 million.
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2027 Unlevered FCF Midpoint of $509 Million
At strip pricing, the 2027 unlevered free cash flow guidance midpoint is $509 million, implying a basic FCF per share of $2.19—a 220% premium to the current share price based on peer FCF yields.
Analysis · SOC · Energy & Transportation
Marking its first full quarter of revenue and positive operating cash flow since inception, Sable Offshore delivered $137.1 million in Q2 revenue and $9.4 million in operating cash flow. Production surged, exiting the quarter at roughly 40,000 net barrels of oil per day—a 149% jump from the start of the period. In a decisive pivot toward cash flow and debt reduction, the company also slashed its second-half 2026 capital spending midpoint by 41% to $85 million. These results arrive against a backdrop of recent refinancing and legal battles, signaling a critical operational turning point. The updated guidance implies $509 million in unlevered free cash flow at the midpoint for 2027, a figure that dwarfs the current equity value and points to significant deleveraging potential if execution stays on track.
At the time of this filing, SOC was trading at $4.78 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $951M. The 52-week trading range was $2.88 to $29.86. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.