Sable Offshore Corp. (NYSE: SOC) has provided an update on its ongoing litigation with the California Coastal Commission. The Santa Barbara Superior Court's tentative ruling, released on October 14, 2025, indicated that it will deny Sable's claims against the Coastal Commission.
The company vigorously disagrees with the court's tentative ruling and intends to appeal this ruling to the California Court of Appeal if adopted after the court's hearing scheduled on October 15.
Sable is suing the Coastal Commission for the damages it has incurred due to the erroneously issued cease and desist orders during Sable's anomaly repair program on the Las Flores pipeline system. The company intends to continue its pursuit of the writ of mandate in the Court of Appeal as well as declaratory relief and inverse condemnation claims in excess of approximately $347 million.
Despite the tentative ruling, Jim Flores, Chairman and CEO of Sable, stated that it has no impact on Sable's business strategy of either resuming petroleum transportation through the Las Flores pipeline system or selling its Santa Ynez unit production through an offshore storage & treating vessel.
Sable continues to work diligently with the state of California to safely and responsibly resume petroleum transportation through the Las Flores pipeline system in accordance with the federal consent decree.
The company plans to pursue the offshore storage & treating vessel strategy, which it believes will allow it to refinance its existing term loan, regardless of whether California approves the resumption of petroleum transportation through the Las Flores pipeline system.
Sable Offshore Corp. is an independent oil and gas company headquartered in Houston, Texas, focused on responsibly developing the Santa Ynez unit in federal waters offshore California. The market has reacted to these announcements by moving the company's shares -4.94% to a price of $17.69. Check out the company's full 8-K submission here.
