Sable Offshore stock rises as Benchmark reiterates Buy rating on Plan B

Benchmark reiterated its Buy rating and $47.00 price target for Sable Offshore Corp. (NYSE:SOC), citing clarity on the company's "Plan B" offshore vessel initiative, which requires $100 million in capital expenditure and $3-$4 per barrel of oil equivalent in operating expenses, targeting Q4 2026 completion. This positive outlook follows a recent 24% stock decline and aims to address prior market concerns over project costs and timelines. Concurrently, Sable Offshore has advanced toward restarting its Las Flores Pipeline System, submitting formal restart plans to California regulators and meeting federal consent decree conditions, with actual operations contingent on final approvals and a post-compliance notice period, marking a pivotal step towards resuming operations halted since 2015.

Analysis

Benchmark has reiterated its Buy rating and a $47.00 price target for Sable Offshore Corp. (SOC), highlighting a significant potential upside from its recent price of $18.12. This bullish stance contrasts sharply with the stock's recent performance, which saw a decline of over 24% in the past week. The catalyst for Benchmark's optimism is the formal presentation of Sable's "Plan B," which clarifies the path forward with an offshore storage and treating vessel. This plan specifies a $100 million capital expenditure, operating costs of $3-$4 per barrel of oil equivalent, and a targeted completion in Q4 2026, addressing prior market concerns about cost and timeline uncertainties. Concurrently, Sable is advancing on a separate critical front by submitting restart plans for its Las Flores Pipeline System to California regulators. The company has reportedly met all operational conditions under a Federal Consent Decree, and a recent court ruling permits it to proceed with securing approvals, although the actual restart is contingent upon a 10-day post-compliance notice period. These developments are pivotal for resuming operations that have been suspended since a 2015 oil spill.

Key Decisions for Investors

• Investors may view the recent 24% stock price decline as a potential entry point, given the significant valuation gap implied by Benchmark's reiterated $47.00 price target.
• Monitor the company's execution against the newly clarified 'Plan B' timeline and $100 million capital expenditure budget, as achieving the Q4 2026 completion target is critical to the long-term investment thesis.
• Closely track regulatory milestones from California's OSFM and any court compliance notices, as the final approval to restart the Las Flores Pipeline represents the most significant near-term catalyst for resuming operations and generating cash flow.