- Earlier this month, Trump signed an executive order to allow Sable to restart the pipeline that was shut down for a decade since the 2015 Refugio Beach oil spill.
- Roth Capital kept a ‘Buy’ rating on Sable Offshore with a $24 price target and said that Sable is on track for its first oil sales by April 1 from the offshore Santa Ynez unit at around 50,000 barrels of oil per day.
Sable offshore (SOC) shares jumped nearly 7% on Tuesday after its oil from a California refinery reportedly found a potential buyer, buoying Wall Street optimism.
Chevron Corp. is reportedly planning to buy some of the first shipments of crude from Sable Offshore Corp.’s platforms off the coast of Santa Barbara.
Details
According to a Bloomberg News report, Chevron plans to buy an initial 20,000 barrels a day of oil. “We’re going to run Sable’s crude at El Segundo in April,” the president of Chevron’s downstream, midstream and chemicals businesses, Andy Walz said in an interview to Bloomberg, referring to the company’s Los Angeles fuel-making plant that can process 269,000 barrels of oil daily.
The news comes on the heels of Trump signing an executive order to allow Sable to restart a pipeline that was shut down for a decade since the 2015 Refugio Beach oil spill, when a corroded segment of one pipeline ruptured and released hundreds of thousands of gallons of oil near Santa Barbara.
Bullish Roth Capital
Roth Capital kept a ‘Buy’ rating on Sable Offshore with a $24 price target and said that Sable is on track for its first oil sales by April 1 from the offshore Santa Ynez unit at around 50,000 barrels of oil per day.
The firm said the company is in the process of filling its oil pipeline with its 540,000 barrels of oil storage and is confident that it can fill the pipe soon and commence first sales by April 1. The company will look to deploy an oil hedging program shortly after refinancing its Exxon Mobil (XOM) term loan, Roth added.
The analyst noted that Sable plans to commence a shareholder return program after getting its debt permanently refinanced and putting on hedges.
Retail Reaction
Retail sentiment around SOC stock trended in ‘bearish’ territory amid ‘low’ message volume.
Shares in the company have jumped 58% so far in 2026.