Sable Offshore: Too Risky, Moving To Sell

I am cutting my losses on Sable Offshore Corp. due to a bearish outlook on crude oil.

2Q results revealed slower-than-expected production ramp, hindered by third-party midstream and downstream constraints outside SOC's control.

SOC's hedging covers only a portion of expected volumes, with collar ceilings limiting upside and net realized prices potentially below $40/bbl.

Operational and infrastructure risks remain elevated, shifting my preference in small-cap E&P toward alternatives like Kosmos Energy.

An important rule of investing is to cut your losses and let your winners run. With this article, I'm cutting my losses on Sable Offshore Corp. (SOC).