Sable Offshore shares jump 15% on Energy Secretary's support

Investing.com -- Sable Offshore Corp. shares climbed 15% in premarket trading Monday after U.S. Energy Secretary Chris Wright voiced support for the company's stalled California oil project.

Wright posted on X Friday night criticizing California's handling of the project, which is currently awaiting state approval. "Only in California! Newsom is blocking oil production off California's coast from reaching their own refineries, driving gasoline prices even higher for Californians!" Wright wrote.

The Energy Secretary added, "Now, this oil production will have to be shipped elsewhere, lowering gas prices for other areas— just not for California! This is the opposite of common sense! The Trump administration is working every day to LOWER energy prices for ALL Americans!"

Roth Capital Partners views the federal government's support as positive for Sable Offshore. The firm maintained its buy rating and $28 price target on the stock.

Roth analyst Leo Mariani noted that shares have been trading at their lowest price in over a year, and expects the federal backing to boost investor confidence in the near term.

"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 stated.

The 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 2026.

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