SOC Stock Reverses 8 Sessions Of Losses After Pricing $300M Offering – This Analyst Highlights The Need For Additional Financing

• Roth Capital lowered the price target to $15 from $22 but maintained a ‘Buy’ rating on the stock, according to The Fly
• The company still needs to secure roughly $350 million in additional financing to meet obligations tied to asset acquisition from Exxon Mobil, the brokerage said.
• However, SOC’s debt could be reduced from the second half of 2026, Roth added.

Shares of Sable Offshore (SOC) surged 35% on Wednesday, snapping an eight-session losing streak, after the oil company priced its offering of 32.47 million shares at $3.08 each, matching the stock’s closing price on Tuesday.

SOC stock has seen a brutal sell-off lately, shedding nearly 70% of its value over the past eight sessions.

SOC’s $300M Note Offering

On Tuesday, Sable had also announced plans to raise $300 million via an offering of convertible senior notes due in 2031, with the potential to sell an additional $45 million in notes.

Sable expects net proceeds of about $288.8 million from the notes offering. Combined with proceeds from the stock sale and its previously announced senior secured term loan, the funds will be used to repay debt owed to Exxon Mobil, cover transaction costs, and support general corporate purposes.

Last month, Sable Offshore announced a senior secured term loan of up to $775 million to replace its existing loan with Exxon Mobil. The loan is tied to the company’s February 2024 acquisition of ExxonMobil’s Santa Ynez Unit (SYU) assets in California.

Why Roth Capital Is Betting On SOC

Following the pricing of the share offering, Roth Capital lowered its price target to $15 from $22 but maintained a ‘Buy’ rating on the stock, according to The Fly.

Analyst Leo Mariani noted that Sable still needs to secure roughly $350 million in additional financing to meet financial assurance obligations tied to its asset acquisition from Exxon Mobil. He estimates the equity offering will dilute the company’s 2027 earnings by about 24%.

However, the analyst believes the term loan will require Sable’s excess free cash flow to reduce debt from the second half of 2026, a development he views as “positive for the equity.”

Retail Sees ‘Good Value Buy’

Retail sentiment turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes.

One user said the financing is de-risked now, and $3.08 should act as support.

Another user said the stock is a “good value buy” at current levels.

SOC shares have slumped around 65% so far this year.

Also read: Gary Black Dismisses FSD Hype Behind Tesla’s Rally, Says Rising Oil Prices Have Boosted Q2 Delivery Expectations

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