Sable Offshore Corp (NYSE:SOC) shares declined 75% in premarket trading on Monday after the company reported third-quarter 2026 revenue below analyst expectations and disclosed that its sole downstream crude oil purchaser had suspended purchases in early October.
The company recorded quarterly revenue of $154.4 million, compared with analysts' estimates of $177.19 million.
Sable said the interruption resulted from maintenance and upgrades at the purchaser's refinery, creating near-term working capital constraints.
Oil Sales Increase During Third Quarter
Sable reported average daily net sales volumes of approximately 27,000 barrels of oil per day during the third quarter, representing a 29% increase from the previous quarter.
The company ended September with $38 million in cash and cash equivalents.
Following the October suspension, Sable began evaluating options to address its liquidity requirements, including a potential bulk sale of crude oil currently held in inventory.
The company also expanded its customer base, beginning crude oil sales to three additional refineries in the Los Angeles area in early November 2026.
Production Operations and Platform Hondo Update
Sable reported that its Perforation Addition operations delivered average incremental production rates exceeding 700 barrels of oil per day per well.
The company also observed little or no production decline across its producing wells during the quarter.
At Platform Hondo, Sable submitted final documentation to the Marine Minerals Administration covering completed platform upgrades.
Physical inspections and initial production activities are scheduled for November, with all producing wells expected to be operational and supplying crude oil for sale in December 2026.
The company forecasts gross production of approximately 10,000 barrels of oil per day from Platform Hondo once the planned wells are operational.
Equity Sales and Outstanding Shares
During the third quarter, Sable issued 16,110,711 common shares through its at-the-market equity programme at an average price of approximately $4.75 per share.
The company reported 207,980,283 shares outstanding at the end of the quarter.
Sable stated that it had not conducted any additional at-the-market equity sales during the fourth quarter through the announcement date.
Company Evaluates Liquidity Options
Sable's immediate operational priorities include addressing the disruption to crude oil sales, managing working capital requirements and completing planned activities at Platform Hondo.
The company has begun diversifying its refinery customers while considering the sale of existing crude oil inventories.
The timing of additional production and sales remains dependent on operational developments, customer arrangements and completion of the scheduled platform inspections.
Sable Offshore stock price
