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A Look At Sable Offshore’s Valuation As It Launches A US$250 Million At The Market Share Offering

Simply Wall St·02/13/2026 07:36:08
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Sable Offshore (SOC) has filed for a follow on equity offering of up to US$250 million in common stock through an at the market program, a move that directly affects existing shareholders’ ownership stakes and capital structure.

See our latest analysis for Sable Offshore.

The follow on offering lands after a volatile stretch, with a 96.66% 90 day share price return, a 29.75% year to date share price decline, and a 73.10% 1 year total shareholder return loss. This suggests that recent momentum contrasts sharply with longer term weakness.

If this fundraising has you thinking more broadly about energy exposure, it could be worth scanning our 87 nuclear energy infrastructure stocks as a starting point for other infrastructure focused opportunities.

With Sable trading at US$8.24 against an analyst price target of US$24.40, along with rapid reported revenue and net income growth but ongoing losses and fresh dilution, you have to ask: is this a mispriced turnaround, or is the market already factoring in future growth?

Preferred Price to Book of 3.4x: Is it justified?

At a last close of $8.24, Sable Offshore trades on a P/B of 3.4x, which sits well below its peer average but above the broader oil and gas industry.

The P/B multiple compares the company’s market value to its book value, essentially what investors are paying for each dollar of net assets. For an offshore producer with meaningful physical infrastructure, this can be a useful reference point when traditional earnings based metrics are less helpful because the company is currently loss making.

On one hand, Sable is flagged as good value when lined up against its direct peers, where the average P/B is 35.1x. On the other hand, it screens as expensive relative to the wider US oil and gas industry, which sits at 1.5x P/B. That split suggests investors are already pricing Sable closer to higher growth or more asset rich peers than to the typical operator in the sector.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to book of 3.4x (ABOUT RIGHT)

However, you still have to weigh the ongoing net loss of US$364.155 million and the fresh equity issuance, which both point to meaningful dilution and execution risk.

Find out about the key risks to this Sable Offshore narrative.

Build Your Own Sable Offshore Narrative

If you see the data differently or want to pressure test these assumptions yourself, you can create your own view in just a few minutes: Do it your way.

A great starting point for your Sable Offshore research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If you are serious about sharpening your portfolio, do not stop at Sable. Cast the net wider and compare it with other ideas that line up with your goals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.