Operational Updates

The previously announced resumption of oil transportation through Segments 324 and 325 of the Santa Ynez Pipeline System ("SYPS") was executed in compliance with all applicable safety standards through our comprehensive pipeline integrity management program. Sable is pleased with its operational performance across the Santa Ynez Unit and the SYPS during this critical period. Sable is also proud to create new, well-paying jobs for the people of California and throughout America.

  • The 40 wells currently online at Platform Harmony and Platform Heritage are producing an average of 750 gross barrels of oil per day per well. Once all 74 production wells on these two platforms are online, Sable expects the average production per well to be approximately 700 gross barrels of oil per day.
  • Sable expects Platform Hondo to come online in June 2026 with an estimated fully ramped production rate of approximately 10,000 gross barrels of oil per day.
  • Capital spend across Sable's assets is expected to be approximately $180 million from April 2026 through December 2026 as the Company focuses on facility upgrades, maintenance capex, and low-cost production optimization operations.

Financial Updates

  • The Company plans to consummate a debt refinancing of its Senior Secured Term Loan in the second quarter of 2026.
  • In addition to our banking partners, Sable is in active discussions with the United States government on potential federal credit support options.
  • Concurrent with the refinancing, Sable plans to implement a commodity hedging program focused on cash flow protection and upside preservation.
  • To date, Sable has sold 7,000,634 shares of its common stock for gross proceeds of approximately $95.0 million through its ATM common stock issuance program.

Consent Decree Update

The United States Department of Justice has moved to terminate or modify the Consent Decree in the United States District Court, Central District of California. Sable is not a party to this litigation, but is participating in briefing related to the Consent Decree termination or modification, which is set to be heard on June 1, 2026.

Additional Legal Updates

Sable is coordinating with the federal government in various legal matters to defend its vested rights to operate its assets and ensure compliance with certain federal mandates, including the Defense Production Act. Sable is also actively pursuing damages and taking proactive legal action to curb state and county regulatory overreach.

  • In the previously announced litigation against the California Coastal Commission (the "CCC"), Sable is actively pursuing damages of at least $347 million from the CCC.
  • Sable is actively pursuing financial damages, expected to be in excess of $100 million, from the County of Santa Barbara for unlawfully withholding the transfer of certain permits to Sable from the prior operator.