Sable Offshore Corp. (NYSE:SOC) recently revealed that it has restarted production at the Santa Ynez Unit. Let's shed some light on this development.
Once owned by ExxonMobil, the Santa Ynez Unit offshore California was forced to shut down due to a pipeline leak and regulatory hurdles in 2015. Despite its net asset value being approximately $10 billion, the asset was acquired by Sable Offshore Corp. (NYSE:SOC) for $883 million last year, and the independent upstream company has since been busy conducting repairs and completing the regulatory requirements necessary to restart production.
Marking a major milestone, Sable Offshore Corp. (NYSE:SOC) announced on May 19, 2025, that it has now restarted oil production at the previously dormant Santa Ynez Unit, with anticipation of oil sales from the Las Flores Pipeline System in July 2025. The company has successfully completed repairs on the pipeline system and started initial oil production from Platform Harmony at a rate of approximately 6,000 barrels per day since May 15, 2025. Sable expects to fill the roughly 540,000 barrels of crude oil storage capacity at Las Flores Canyon by mid-June and to recommence oil sales in July.
Following the development, Sable Offshore Corp. (NYSE:SOC) has updated its guidance for the second half of 2025, doubling its net average daily production estimates from the previously projected 20,000-25,000 boe/d to 40,000-50,000 boe/d, reaching levels not previously expected until the first half of 2027. As a result, SOC has garnered increasing interest from investors, with the stock hitting its all-time high on May 19th, 2025.
The significant achievement didn't go unnoticed by analysts, with TD Cowen raising Sable Offshore Corp. (NYSE:SOC)'s price target from $31 to $40, while reiterating a Buy rating.
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