Sable Offshore (SOC) has received a new Buy rating, initiated by TD Cowen analyst, David Deckelbaum.
David Deckelbaum has given his Buy rating due to a combination of factors including Sable Offshore Corporation’s promising offshore California production story and the potential for high free cash flow (FCF) yields post-restoration of previously shut-in production. The attractiveness of Sable’s reservoir and the expected significant relative FCF yields are key considerations. Additionally, the energy sector’s strong performance, particularly in terms of FCF yields, supports the positive outlook for Sable Offshore, which is anticipated to trade at appealing FCF yields in the near future.
Furthermore, Deckelbaum considers the company’s strategic moves, such as the acquisition of Santa Ynez from Exxon Mobil and the ongoing repair work on critical pipeline infrastructure, as steps toward realizing substantial free cash flow generation. With approvals pending and a clear timeline for restarting production, Sable Offshore is positioned to potentially offer a substantial dividend to shareholders. Deckelbaum’s analysis suggests that SOC’s approach to restoring production and capitalizing on its drilling inventory aligns with the industry-wide imperative for energy companies to deliver increased free cash yields and return excess capital to shareholders.
According to TipRanks, Deckelbaum is an analyst with an average return of -10.1% and a 30.88% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as APA, Coterra Energy, and EQT.
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Sable Offshore (SOC) Company Description:
Flame Acquisition Corp is a blank check company.
