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Sable Offshore Corp. (SOC) experienced a significant stock price surge on Tuesday, December 23, 2025, following a major regulatory announcement. The company disclosed that the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has approved its Restart Plan for the Las Flores Pipeline System, specifically for Line CA-324 and Line CA-325.

This approval represents a crucial milestone for the Houston-based oil and gas company, which has been working to reactivate dormant offshore oil platforms purchased from Exxon Mobil in federal waters near Santa Barbara, California.

Federal Approval Clears Path for Las Flores Pipeline Restart
 

According to a Securities and Exchange Commission filing, PHMSA notified Sable Offshore of its decision on December 22, 2025, granting the company permission to move forward with steps outlined in its plan to bring the pipeline system back into operation.

The Las Flores Pipeline System, which includes Line CA-324 and Line CA-325, is a key infrastructure component connecting the Santa Ynez Unit to the Pentland Station terminal in Kern County. This regulatory confirmation grants PHMSA exclusive authority over the pipeline, representing a significant development for the company’s Santa Ynez project.

The approval comes at a critical time for Sable Offshore, as the company’s entire business model hinges on successfully operating in California’s challenging regulatory environment. Under the leadership of Chief Executive James Flores, who was recently promoted to President and Chief Operating Officer, the company has sought to reboot dormant oil platforms in federal waters.

The federal approval allows Sable to bypass some state-level regulatory hurdles, as the company has turned to the Trump administration for help with financing and permitting, including plans to load crude onto tankers in the middle of the ocean to sidestep the need for a California-approved pipeline.

SOC Shares Surge as Investors React to Regulatory News
 

As of 10:03:27 AM EST on Tuesday, December 23, 2025, Sable Offshore stock was trading at $8.26, up $0.66 or 8.66% for the day. In premarket trading, shares had jumped as high as 18%, reaching $8.95, reflecting strong investor enthusiasm for the pipeline approval.

The stock opened at $8.83 and traded in a range of $7.99 to $9.10 during the session, with volume reaching 8,424,048 shares compared to an average volume of 7,708,292 shares.

Despite the day’s strong performance, Sable Offshore has faced significant challenges over the past year. The stock is down approximately 62.82% year-to-date and 62.19% over the past 12 months, with a 52-week range of $3.72 to $35.00. The company currently has a market capitalization of $1.234 billion and trades without a P/E ratio due to negative earnings of -$0.97 per share.

Analyst price targets for SOC range from a low of $16.00 to a high of $29.00, with an average target of $21.20, suggesting substantial upside potential from current levels. However, investors should note that the company faces financial challenges, with InvestingPro data indicating it is quickly burning through cash with a concerning current ratio of 0.07, meaning short-term obligations exceed liquid assets.

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