Sable Offshore Corp. announced that it has begun selling oil through its Santa Ynez Pipeline System, the first commercial sales from the previously dormant unit. The sales started on March 29, 2026, and the announcement was made on April 1, 2026. The company acquired the Santa Ynez Unit from ExxonMobil on February 14, 2024, and the unit had been shut down since May 2015 after the Refugio oil spill.
The restart marks the first revenue‑generating operation for Sable since the acquisition, turning a high‑burn balance sheet into a cash‑flow positive business. The company reported a net loss of $410.2 million for 2025, and its enterprise value had risen to approximately $3.54 billion by late March 2026. Analysts expect the company to achieve positive EBITDA by the end of Q2 2026 as production ramps up.
The restart was made possible after a federal intervention under the Defense Production Act, which forced the pipeline to resume operations amid a series of state‑level legal challenges and environmental lawsuits. The company had faced criminal charges for violating environmental laws, and the federal government’s action was critical in overriding California regulators and environmental groups that had blocked the restart.
Oil is being moved from the Harmony, Heritage, and Hondo platforms through the pipeline to onshore storage. The mix of platforms allows Sable to diversify its production base and scale operations more quickly than if it relied on a single source.
Jim Flores, Chairman and CEO, said: “Sable is proud to announce oil sales through the Santa Ynez Pipeline System to Chevron. In doing so, we are providing American oil from American soil through an American pipeline to an American refinery for American consumers and the United States military.” The statement underscores the company’s commitment to domestic supply and national security.
Investors reacted positively to the restart, reflecting confidence that the company can now generate revenue and eliminate the risk of asset reversion to ExxonMobil by the January 1, 2026 deadline. The federal intervention and the removal of regulatory headwinds were key factors driving the market’s favorable response.
With the pipeline operational, Sable is positioned to become a significant contributor to the West Coast oil supply chain, potentially replacing foreign crude imports and supporting domestic refineries. The event also sets the stage for future growth as the company scales production across its platforms.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.