The company disclosed that it has received subpoenas from the U.S. Attorney’s Office for the Southern District of New York and the SEC on reports of selective disclosure of material information to certain investors.
- The report alleged that golfer Phil Mickelson was among the select investors.
- Sable said it is providing documents and cooperating with requests from the government.
- Sable also entered into a sales agreement with TD Securities and Jefferies to sell up to $250 million of common stock.
Shares of Sable Offshore Corp. (SOC) plunged over 10% on Tuesday after the company revealed it had received subpoenas from the U.S. Attorney’s Office for the Southern District of New York and the SEC, following a Hunterbrook investigation alleging selective disclosure of material information to certain investors.
The company also announced a $250 million share sale agreement.
In an SEC filing, Sable said it received the subpoenas on December 2, weeks after Hunterbrook’s October 31 report. The report alleged that CEO Jim Flores shared multiple updates privately with select investors, including golfer Phil Mickelson.
One such update was that the company may need to raise up to $200 million in equity by the end of 2025. Sable said it is providing documents and cooperating with government requests.
Sable’s $250 Million Share Sale Plan
Sable also entered into a sales agreement with TD Securities (USA) LLC and Jefferies LLC, which will allow the company to sell up to $250 million of its common stock through an at-the-market (ATM) offering.
Last month, California Attorney General Rob Bonta sued the Donald Trump administration over the planned restart of two onshore oil pipelines owned and operated by Sable. The lawsuit challenged federal orders that assert exclusive jurisdiction over the Las Flores pipelines. Bonta argued the pipelines run within California and should remain under state oversight, citing environmental risks.
The lines have been shut down for a decade following the 2015 Refugio Beach oil spill, which released hundreds of thousands of gallons of crude.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits turned ‘extremely bearish’ from ‘bearish’ a day earlier. One user said the stock’s decline was an overreaction by the market.
Year-to-date, SOC shares have declined around 25%.
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