Sable Offshore Corp. (NYSE:SOC) shares surged 68.37% in after-hours trading on Wednesday, rising to $8.89, following federal confirmation of interstate pipeline classification.
Check out the current price of SOC stock here.
The stock closed on Wednesday at $5.28, down 2.76%, according to Benzinga Pro data.
PHMSA Confirms Interstate Pipeline Status
The Pipeline and Hazardous Materials Safety Administration on Wednesday told Sable Offshore that it agrees with the company’s Nov. 26 conclusion that its pipeline linking the Santa Ynez Unit to the Pentland Station terminal in Kern County, California, qualifies as an interstate pipeline facility under the Pipeline Safety Act, according to a Form 8-K filed with the Securities and Exchange Commission.
A Form 8-K filed with the SEC is used by public companies to promptly disclose material events to investors.
The filing stated PHMSA “is vested with exclusive regulatory authority over interstate pipelines.”
According to the PHMSA letter, Sable requested PHMSA transition regulatory oversight from the California Office of the State Fire Marshal to PHMSA.
Pipeline System Operations
The Las Flores Pipeline links the Santa Ynez Unit to the Pentland Station terminal in Kern County, California.
In its letter, PHMSA said that Sable “operates the Las Flores Pipeline assets as a single pipeline system transporting crude oil from the Outer Continental Shelf to the Pentland Station terminal in Kern County, California.”
Sable acquired the pipeline assets in 2024. The system comprises of offshore pipelines, an onshore processing facility at Las Flores Canyon, pump stations at Gaviota and Sisquoc, a control room in Santa Maria, and the offshore Harmony platform.
Regulatory Transition
PHMSA conducted an on-site inspection last week, with OSFM representatives present. The agency considers the pipeline system “active” according to PHMSA regulations.
Portions of the Las Flores Pipeline had been considered intrastate since 2016 and were regulated by the OSFM. That classification change followed the previous owner’s 2016 decision to cancel tariffs with the Federal Energy Regulatory Commission.
Trading Metrics
The stock of the Houston-based oil and gas company has fallen 77.32% year to date.
Sable Offshore has a market capitalization of $765.4 million, with a 52-week trading range between $3.72 and $35.
Benzinga’s Edge Stock Rankings indicates SOC stock has a negative price trend across all time frames. Track the performance of other players in this segment.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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