Sable Offshore Stock (SOC) Sinks as Court Probes Permit to Restart Pipeline System

Sable Offshore’s SOC -6.42% ▼ shares plunged over 8% on Friday morning. This came after a federal court determined that the U.S. government acted in “bad faith” in giving a speedy approval to the offshore oil and gas producer to restart oil drilling off the coast of California.

Claim 70% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

**Court Investigates Sable Offshore’s Permit **

Judge Michelle Williams of the U.S. District Court in California on Thursday ordered the U.S. Department of the Interior to turn over records detailing its interactions with the company regarding potential oil spill hazards tied to restarting operations.

The order comes after the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) in December granted an emergency special permit to Sable Offshore to restart segments 324 and 325 of the Santa Ynez Pipeline System in California.

Environmental Groups Push Against System Restart

The segments are parts of the original Plains All American PAA -0.07% ▼ pipeline system that was impacted during the oil spill that occurred near Refugio State Beach in Santa Barbara County, California, in 2025. Sable Offshore acquired the system in February 2024 from Exxon Mobil XOM +1.21% ▲ in a distressed asset sale for $989 million and has been working towards restarting the system.

However, environmental groups have criticized the move. Now, the court is asking the federal government to provide documents on its engagement with Sable Offshore between April 2024 and May 2025.

Trump Administration to Preempt California?

The court order comes amid reports that President Donald Trump’s administration is looking to override California’s drilling restrictions on the independent energy company by tapping a Cold War-era law.

The reports emerged even as the U.S. Department of Justice issued a formal opinion last week, saying a move based on the law would be considered lawful and effective.

Is SOC a Good Stock to Buy?

On Wall Street, analysts remain confident in Sable Offshore’s shares and continue to maintain their Strong Buy consensus rating on the stock. This is based on three Buys and one Hold issued over the past three months.

In addition, the average SOC price target of $24.75 implies about 54% upside from current trading levels.

Disclaimer & DisclosureReport an Issue