Sable Stock Crumbles: Short Sellers Bet Against A 'Zombie Pipeline'

Core Viewpoint - Sable Offshore Corp. is facing significant challenges as its stock plummeted following an investigation update by Hunterbrook Media and a lawsuit filed by California Attorney General Rob Bonta to block oil transport through the Sable Pipeline [1][5]. Group 1: Financial and Operational Challenges - Sable Offshore is reportedly "quickly running out of cash" and may never reach the point of selling oil, according to Hunterbrook Capital, which has taken a short position on the stock [1][4]. - The company's shares fell 15.89% to $10.43 on Friday, reflecting investor concerns about its financial viability [5]. Group 2: Regulatory and Legal Issues - California Attorney General Bonta has filed a lawsuit against the Trump administration to block the restart of oil transport through the Sable Pipeline, complicating the project's future [4][5]. - Under California law SB 237, Sable must install specific safety valves, which they have reportedly struggled to implement, leading to further technical and regulatory delays [3]. Group 3: Local Opposition and Controversies - Santa Barbara County has denied the transfer of essential permits from Exxon to Sable, citing the history of the 2015 Refugio spill, which adds to the local opposition against the project [4]. - Hunterbrook Media claims to have leaked recordings of CEO Jim Flores disparaging the California Coastal Commission, which could hinder the company's ability to secure necessary permits [2].