Investment Thesis
Sable Offshore is in critical financial distress with only $1.3M in revenue against operating losses of $118.8M and net losses of $197.0M. The company faces imminent solvency risk with a current ratio of 0.08x and annual free cash flow burn of $103.3M against only $52.2M in cash reserves, indicating depletion within 6 months at current burn rates.
Strengths
- No long-term debt on balance sheet reduces refinancing risk
- Net loss improved 33.6% YoY from extremely negative baseline indicating potential cost control efforts
- Positive stockholders equity of $421.9M provides some asset base
Risks
- Critical liquidity crisis: current ratio of 0.08x indicates current liabilities far exceed current assets
- Unsustainable cash burn: $103.3M annual free cash flow burn against only $52.2M cash reserves
- Revenue collapse: $1.3M revenue is inadequate to support operational costs, suggesting non-functional business model
- Negative operating cash flow of $82.2M indicates operations are destroying shareholder value
- Catastrophic profitability metrics: operating margin of -9343% and net margin of -15501% are unsustainable
- Likely insolvency: financial trajectory indicates bankruptcy within months without capital infusion or dramatic operational turnaround
Key Metrics to Watch
- Cash burn rate and remaining runway before cash depletion
- Revenue generation and path to positive operating cash flow
- Current ratio and ability to meet short-term obligations
- Debt restructuring activity or capital raise announcements
Financial Metrics
Revenue
1.3M
Net Income
-197.0M
EPS (Diluted)
$-1.37
Free Cash Flow
-103.3M
Total Assets
1.7B
Cash
52.2M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-9,343.4%
Net Margin
-15,501.7%
ROE
-46.7%
ROA
-11.4%
FCF Margin
-8,125.4%
Balance Sheet & Liquidity
Current Ratio
0.08x
Quick Ratio
0.07x
Debt/Equity
0.00x
Debt/Assets
75.6%
Interest Coverage
-12.12x
Long-term Debt
0.0
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-10T07:46:15.216203 |
Data as of: 2026-03-31 |
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