Episode Details

I have been beating the drum on Sable Offshore $SOC in recent weeks, but I wanted to share a couple thoughts on some of the pushback I get when I talk to other investors. A lot of investors can’t (or won’t) separate the quality of the asset from the fact that it’s in California. The short version is that I think the Santa Ynez Unit will have a similar economic profile to Ghawar after ramping production over the next 12-18 months, even if it won’t produce millions of barrels a day like Ghawar.

I also covered the equity raise and some of my thoughts there. The more interesting part was Sable’s production guidance, where I think their production levels and costs are headed, and why I think guidance could turn out to be conservative. I also talked about the timeline for the business and the catalysts that line up for the next several months. I also briefly covered the index rebalancing and other non-fundamental dynamics that could push shares higher.

Disclaimer

I own shares and calls on Sable Offshore. You should do your own research before making any investment decisions. Different investment strategies have different risk/return profiles which should be considered before making any decisions.

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