Sable Offshore: The Tides Have Shifted In Favor Of Production Start (Rating Upgrade)

Michael Del Monte6.76K FollowersFollow5ShareSavePlay(7min)CommentsSummarySable Offshore is upgraded to Strong Buy with a $31/share price target, driven by federal support and rising oil prices.Federal urgency to offset Middle East supply disruptions increases the likelihood of SOC's Santa Ynez Unit restarting by the end of 2026.High oil prices and strategic government actions create favorable operating leverage and market conditions for SOC's offshore production.Restart strategies include local refining via the Santa Ynez Pipeline or direct export using an OS&T vessel, with financials favoring the latter. pengpeng/E+ via Getty Images Sable Offshore (SOC) has received substantial support at the federal level in recent months in an attempt to bring back online the Santa Ynez Unit, a major Pacific offshore project that is expected to produce roughly 60,000 boe/d once fullyThis article was written byMichael Del Monte6.76K FollowersFollowMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SOC, XOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.