Earnings

Sable Offshore Completes Hondo Commissioning

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue reached $154.4 million, up 13% from the second quarter, as net sales volumes rose to about 27 thousand barrels of oil a day.

Sable Offshore Corp. (SOC) reported $154.4 million of total revenue in the third quarter of 2026, a 13% increase from $137.1 million in the second quarter, as the independent oil and gas company lifted average daily net sales volumes to approximately 27 thousand net barrels of oil per day.

The 29% rise in net sales volumes from about 21 thousand net barrels of oil per day in the second quarter marked a further step in the ramp after the company resumed sales under a March Defense Production Act order and restarted Platforms Harmony and Heritage.

Production ran at an average 795 gross barrels of oil per day per well from an average of 37 wells per day, compared with 723 gross barrels of oil per day per well from 35 wells in the second quarter. Sable said it observed little to no production decline from producing wells and that average reservoir pressure in the Upper Siliceous, Massive Chert, and Lower Calcareous zones of the Monterey formation at the Santa Ynez Unit remained stable.

Perforation Addition operations continued at the upper end of management expectations, with average increased production rates of over 700 barrels of oil per day per well. One Perf Add was executed in the third quarter, bringing completed Perf Adds in 2026 to eight. Sable forecasts eight Perf Add operations in 2027.

The company completed Platform Hondo reconstruction and internal operational commissioning in the third quarter. It has submitted final paperwork to the Marine Minerals Administration reflecting all platform upgrades and is testing a new platform control system. Physical MMA inspections and initial production are scheduled for November 2026. All producing wells are scheduled to be online and flowing to sales in December 2026 at a forecasted rate of approximately 10,000 gross barrels of oil per day.

Cash and cash equivalents ended the quarter at $38.0 million. Shares outstanding increased to 207,980,283 after Sable sold 16,110,711 shares in its at-the-market equity program at an average price of approximately $4.75 a share, versus 154,531,910 shares at the end of the second quarter. No ATM sales have occurred in the fourth quarter to date; the most recent sale was on September 17, 2026.

Sable refinanced its former Senior Secured Term Loan in the third quarter with a capital raise of about $1.1 billion and subsequently reduced total debt by about $17 million. The company said it is targeting further debt amortization and balance-sheet optimization in 2027 with lower-cost debt financing after a full production ramp-up.

Crude oil sales were halted by the company’s sole downstream crude purchaser in early October 2026 due to maintenance and upgrades to storage tanks at that refinery. In early November 2026, Sable began selling crude oil to three additional Los Angeles-area refineries. It expects all four major Los Angeles-area refineries to increase their purchases of SYU crude over time and is evaluating options to resolve near-term working-capital constraints, including a bulk sale of crude oil currently held in inventory. The addition of Platform Hondo’s lighter and sweeter crude is anticipated to improve overall sulfur content of SYU crude oil production field-wide.

Sable said it is working with the federal government on legislation for military force readiness objectives and the designation of a West Coast Strategic Petroleum Reserve, and that it continues to defend vested rights and pursue financial damages in disputes with the County of Santa Barbara and the California Coastal Commission.

More on SOC

September 28, 2026 QBook Stronger demand supports expansion as pricing diverges

Sable Offshore Corp. — all coverage and financials