Sable Offshore surges after DoE secretary shows support for stalled California oil project

[Gas Pipeline In Front Of The Oil Pump]
imaginima/iStock via Getty Images

Sable Offshore (NYSE:SOC [https://seekingalpha.com/symbol/SOC]) +12.1% in early trading Monday after U.S. Energy Secretary Wright sent out a social media post Friday night supporting the company's attempt to restart one of its California oil projects that is awaiting state approval.

California's Governor Newsom is "blocking oil production off California's coast from reaching their own refineries, driving gasoline prices even higher for Californians! Now, this oil production will have to be shipped elsewhere, lowering gas prices for other area - just not for California! This is the opposite of common sense!" Wright wrote.

Roth Capital analyst Leo Mariani maintained his Buy rating and $28 price target on Sable Offshore (NYSE:SOC [https://seekingalpha.com/symbol/SOC]), seeing the Trump administration's support as positive and helping the stock in the near-term, with shares mired near the lowest price in more than a year.

"We expect that the post from Secretary Wright ought to give investors some assurance that the federal government is behind this oil project and that it can get to production via an FPSO in late 2026," Mariani wrote.

Sable Offshore's (SOC [https://seekingalpha.com/symbol/SOC]) project aims to restart oil production off the California coast, with plans to begin operations through a floating production storage and offloading vessel by late next year.

MORE ON SABLE OFFSHORE

* Sable Offshore: Risky, But Deeply Discounted [https://seekingalpha.com/article/4822167-sable-offshore-risky-but-deeply-discounted]
* Sable Offshore: Stretched Valuation Not Justified By Risk Or Future EBITDA - Avoid [https://seekingalpha.com/article/4814490-sable-offshore-stock-stretched-valuation-not-justified-by-risk-future-ebitda-avoid]
* Seeking Alpha's Quant Rating on Sable Offshore [https://seekingalpha.com/symbol/SOC/ratings/quant-ratings]