Sable Offshore Corp. (SOC) Shares Drop 13.23% Amid California Lawsuit Blocking Oil Transport
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Benzinga
- Lawsuit Impact: California Attorney General Rob Bonta's lawsuit against the Trump Administration to block the restart of oil transport through the Sable Pipeline has led to a 13.23% drop in Sable Offshore's stock, indicating market unease about the company's operational future.
- Legal Challenge: The lawsuit questions the PHMSA's emergency permit allowing Sable to restart operations of the Las Flores Pipeline, arguing it violates the Administrative Procedure Act, highlighting California's commitment to environmental protection and state authority over federal decisions.
- Technical Analysis: Sable Offshore's stock is currently trading 5.7% above its 20-day simple moving average but 13% below its 100-day SMA, reflecting a contradiction between short-term strength and long-term weakness in performance.
- Market Performance: Over the past 12 months, Sable Offshore shares have decreased by approximately 61.62%, positioning the stock closer to its 52-week lows, while the Benzinga Edge score indicates underperformance in the market, suggesting caution for potential investors.
Analyst Views on SOC
Wall Street analysts forecast SOC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOC is 22.50 USD with a low forecast of 19.00 USD and a high forecast of 29.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 10.250
Low
19.00
Averages
22.50
High
29.00
Current: 10.250
Low
19.00
Averages
22.50
High
29.00
About SOC
Sable Offshore Corp. is an independent oil and gas company focused on developing the Santa Ynez Unit (SYU) in federal waters offshore California. SYU consists of three offshore platforms and a wholly owned onshore processing facility located along the Gaviota Coast at Las Flores Canyon in Santa Barbara County, California. The offshore position comprises 16 federal leases across approximately 76,000 acres. The Company’s Hondo platform and the Harmony platform develop the Hondo Field, and the Heritage platform develops the Pescado and Sacate Fields. The platforms are located five to nine miles offshore of Santa Barbara County in shallow water depths of 900 to 1,200 feet and service 112 wells, comprised of 90 producers, 12 injectors and 10 idle with an additional 102 identified, undrilled opportunities. The onshore facilities occupy approximately 35 acres and are comprised of an oil treating plant, a biologic/physical water treating plant, POPCO gas plant, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
