SOC

Hunterbrook Capital is short $SOC. Sable Offshore has disclosed receiving subpoenas from the SDNY and SEC following a Hunterbrook investigation that revealed potential selective disclosure of material information to investors. The company has formed a special committee to investigate and is cooperating with the federal requests. This news comes as Sable is trying to raise $250 million and faces significant legal and regulatory risks.

Exxon spinoff Sable Offshore faces seven barriers to restarting its pipeline, idled since a major oil spill in 2015. One of those approvals needs to come from the California Coastal Commission, which Sable CEO Jim Flores criticized for its “Teflon” “eco-Nazi attitude” in a leaked call recording newly obtained by Hunterbrook. Because of these barriers — and despite Trump Administration intervention — Sable’s project, originally scheduled to go online in Jan 2024, may never sell oil. At least not under the ownership of Sable ($SOC), which is quickly running out of cash.

SOC: Binary regulatory outcome resolved favorably Feb 12 when California Coastal Commission ruled Sable didn't need approval to restart suspended Exxon assets. Stock surged from ~$20 to $30s. Used strangle strategy (calls+puts) to profit from either direction, calls doubled despite puts expiring worthless.