Shares of Sable Offshore Corp. (NYSE:SOC) dropped about 13% on Tuesday after the company announced plans to launch a $250 million “at-the-market” equity offering.
In a filing with the U.S. Securities and Exchange Commission, Sable said it has entered into a sales agreement with TD Securities and Jefferies, which will act as agents for the program. Under the arrangement, the company may sell up to $250 million worth of its common stock from time to time, at its discretion, with no requirement to issue any shares.
The agents will receive a commission of up to 3.0% of the gross proceeds from any shares sold. The offering will be carried out as an “at-the-market” program under Rule 415 of the Securities Act of 1933.
Sable disclosed that the agreement was put in place on February 2, 2026, with a corresponding prospectus supplement filed the same day. The shares will be issued under an existing shelf registration statement that became effective on May 1, 2025.
Either party may terminate the agreement with ten days’ written notice, and the company retains the right to pause or suspend sales under the program at any time.
The sharp decline in the stock reflects typical investor concerns about potential dilution, as new share issuance can reduce earnings per share and dilute existing shareholders’ ownership stakes.