Sable Offshore (SOC) Drops 14.1% After California AG Sues Trump Administration Over Pipeline Restart
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: seekingalpha
- Legal Action Impact: California's attorney general has filed a lawsuit against the Trump administration for unlawfully restarting Sable Offshore's pipeline, resulting in a 14.1% drop in the company's stock on Friday, indicating market uncertainty regarding its operational future.
- Pipeline Reclassification Controversy: The lawsuit claims the Trump administration illegally reclassified the Las Flores pipeline as 'interstate,' despite it operating between two California counties, which could lead to stricter regulatory scrutiny for the company.
- Historical Context: The dispute has persisted since the drilling project was shut down in 2015 due to an oil spill, highlighting Sable Offshore's long-term challenges with environmental and legal risks that may affect its future investment appeal.
- Market Reaction: Investor skepticism regarding Sable Offshore's prospects has increased, particularly amid political and legal pressures, leading to a significant decline in confidence in its valuation and potential future financing difficulties.
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.
