Sable Offshore sinks after Exxon Mobil loan extension, equity raise plans

Sable Offshore's SOC.N shares sink as much as 28.6% to record low $7.47 on Mon after co announced it would extend a loan with Exxon Mobil XOM.N and plans to raise $225 mln of equity

Houston, Texas-based oil driller said early Mon it's extending the maturity of a term loan with XOM to the earlier of Mar 31, 2027, or 90 days after first sales of hydrocarbons contingent upon SOC raising at least $225 mln in stock, net of underwriting fees and other expenses

Sources told Reuters recently that SOC would need about $1.7 bln in funding to implement a floating storage strategy it proposed as an alternative to marketing crude from the Santa Ynez field off California by pipeline

A California judge on Oct 14 ruled against SOC's request to lift the state's cease-and-desist order on repairs it had made to an onshore pipeline system linked to the Santa Ynez project

Co also said early Mon it formed a special committee to investigate allegations contained in a report by Hunterbrook on Fri Hunterbrook alleged SOC selectively disclosed information to investors, including professional golfer Phil Mickelson

SOC shares ended down about 18% on Fri

Including the move on Mon, stock has lost ~67% YTD

Co went public in Feb 2024 after merger with SPAC Flame Acquisition Corp