Key facts
- Sable said it does not expect operating cash flow and remaining refinancing proceeds to cover near-term operating costs and debt payments.
- The company said it has begun selling to other buyers and is pursuing inventory sales, equity and unsecured debt financing.
- Sable is evaluating selling crude oil held in inventory through a bulk sale agreement.
- The company said the timing and success of those efforts remain uncertain.
Sable Offshore shares fell 60.5% to a record low of 76 cents on November 9 after the oil producer raised "substantial doubt" about its ability to continue as a going concern, citing strained liquidity from sales disruption to its main buyer. The shares were last down 57.6%.
In an SEC filing, Sable said ongoing purchase reductions by its main crude-oil buyer forced it to reduce production and are expected to leave it short of liquidity to meet obligations when they fall due. The disruption continued through the filing date and prompted the company to cut output to manage inventories.
Sable said it does not expect operating cash flow and remaining refinancing proceeds to cover near-term operating costs and debt payments. The company said it is looking at options to resolve near-term working capital constraints caused by the downstream purchaser disruption, and is evaluating selling crude oil held in inventory via a bulk sale agreement.
Sable said it has begun selling to other buyers and is pursuing inventory sales, equity and unsecured debt financing, but said the timing and success of those efforts remain uncertain. In March, the company issued a going-concern warning due to its debt maturities and liquidity position, which eased after refinancing transactions completed in July extended debt maturities and improved liquidity.