Sable Offshore Offers Convexity For 2025
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Sable Offshore Corp. (SOC) is a high-risk investment with potential upside if the Santa Ynez pipeline reopens in Q1 2025. Waivers from the California Office of the State Fire Marshal are a significant milestone, with hydrotesting scheduled for January 2025. If reopened, Santa Ynez could produce over 50,000 barrels per day, but high capex and operational risks remain.
December 21, 2024 | 12:00 pm
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Sable Offshore Corp. (SOC) could see significant upside if the Santa Ynez pipeline reopens in Q1 2025, following key regulatory waivers and hydrotesting. However, high capex and operational risks persist.
The reopening of the Santa Ynez pipeline is a critical event for SOC, potentially increasing production significantly. The recent regulatory waivers and scheduled hydrotesting are positive steps towards this goal. However, the high capital expenditure and operational risks associated with the project temper the potential upside.
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