- The restart was backed by the U.S. government under the Defense Production Act.
- Production is already underway at Platform Harmony, while Platform Heritage is set to restart following final inspections.
- Jefferies raised Sable Offshore’s price target to $30 from $28 and maintained a ‘Buy’ rating.
Shares of Sable Offshore Corp. (SOC) rose 2% on Monday after the company said it had begun oil sales from its Santa Ynez Pipeline System in California, just weeks after a U.S. government order to resume activity.
The energy firm said it is transporting oil at rates exceeding 50,000 barrels per day. Production is already underway at Platform Harmony, generating about 22,000 barrels per day, while Platform Heritage is set to restart following final inspections, with expected output above 30,000 barrels per day.
The company also plans to bring Platform Hondo online by the end of the second quarter. Sable is delivering the oil to Chevron.
Operations Restart Amid Legal Battle
The restart was backed by the U.S. government under the Defense Production Act to address supply concerns amid rising fuel prices. Energy Secretary Wright ordered the restart, citing reliance on foreign oil.
He said the project could boost California’s in-state production by about 15% and replace nearly 1.5 million barrels of imported crude each month. Sable had earlier resumed the flow of oil from its Santa Ynez Unit to Pentland Station in California.
However, the move triggered a legal challenge in California, with opponents arguing the pipeline should remain under state oversight due to environmental concerns. The line had been shut since 2015, when a spill released over 100,000 gallons of crude oil into the Pacific Ocean and along beaches near Santa Barbara.
On Sunday, Jefferies raised its price target on Sable Offshore to $30 from $28 and maintained a ‘Buy’ rating, according to The Fly. The firm expects further upside driven by higher production potential, lower-cost refinancing, and favorable oil prices. The stock is currently trading at around $19.
How Did Retail Traders React?
Retail sentiment for SOC on Stocktwits remained in the ‘bearish’ territory over the past 24 hours.
One user suggested watching for a dip in the stock price as a potential buying opportunity.
Another user expects the stock to climb to $30.
The stock has seen solid buying interest this year, gaining more than 70%.
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