Key Highlights

  • Sable extended its senior secured term loan maturity to July 24, 2026 and paid ExxonMobil a $30 million amendment fee on June 22.
  • The limited waiver suspends plugging and abandonment financial security requirements until as late as December 22, 2028.
  • The planned new senior secured term loan has been reduced from a larger figure to up to $775 million following the waiver.
  • SOC shares closed at $10.12 on June 18, down 1.27%, with a market cap of approximately $1.01 billion and a 52-week range of $3.72 to $32.18.

Sable Offshore Corp (NYSE:SOC) and ExxonMobil Corporation (NYSE:XOM) entered into an amendment to their senior secured term loan agreement on June 22, 2026, extending the loan's maturity date to July 24, 2026, while also agreeing to a limited waiver of the company's plugging and abandonment financial security obligations under the November 2022 purchase and sale agreement between the two parties.

As part of the amendment, Sable paid ExxonMobil a $30 million fee on June 22. ExxonMobil in turn agreed to suspend and waive the minimum liquidity covenant of $25 million that had been introduced in the second amendment to the senior secured term loan, with that suspension running until the amended maturity date.

The limited waiver temporarily removes the requirement for Sable to provide plugging and abandonment financial security within three business days of the maturity date. The waiver remains in place until the earliest of December 22, 2028, the date on which any new secured financing used to refinance the existing term loan is repaid or otherwise refinanced, or the date on which any event of default occurs under the senior secured term loan or related financing documents.

As a result of the waiver, Sable has reduced the proposed size of its previously announced new senior secured term loan to up to $775 million. The company said it still intends to pursue additional unsecured capital markets solutions alongside the new loan. JPMorgan Chase Bank is expected to serve as administrative agent under the new facility. Proceeds from the new term loan, together with unsecured capital markets proceeds, are intended to fund repayment of the existing senior secured term loan and cover transaction fees and expenses.

Sable is an independent oil and gas company focused on developing the Santa Ynez Unit in federal waters offshore California, operating three offshore platforms across approximately 76,000 acres. The company targets fully ramped gross production of approximately 62,000 barrels of oil equivalent per day, with 2027 adjusted EBITDA guidance of $738 million to $985 million and net production of 47.5 to 52.5 million barrels of oil equivalent per day projected for 2027 to 2028.

SOC shares edged 0.84% higher to $10.21 in pre-market trading on June 22, recovering modestly from Friday's close of $10.12. The stock has been under pressure, down roughly 30% over the past month and 54% over the past year, weighed by a wider-than-expected Q1 loss and minimal revenue against expectations.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.