Sable Offshore Corp. (NYSE:SOC) on Tuesday disclosed in a regulatory filing for a $250 million stock offering, that both the U.S. Securities and Exchange Commission (SEC) and federal prosecutors in New York have issued subpoenas for company documents.
The core issues involve allegations that the company shared sensitive data with specific high-profile investors, including professional golfer Phil Mickelson, while keeping others in the dark.
Benzinga reached out to Sable Offshore for comment, but did not receive an immediate response.
According to allegations made by Hunterbrook Media, CEO Jim Flores held a conference call in October 2025 with a select group of investors where he allegedly shared non-public, material information, including the need to raise up to $200 million by the end of 2025.
Sable previously established an internal committee to review the claims, and now the company states it is officially "providing documents and cooperating with the Government Requests."
Potential Consequences
The company admitted that the probes carry significant weight.
"If the SEC or SDNY were to conclude that an enforcement action is appropriate, the SEC could impose civil penalties and fines, and other sanctions against us or against our current and former officers and directors," the company wrote in the filing.
"The SDNY could impose criminal penalties,” Sable stated.
Financial Context
The investigations come as the firm attempts to restart a controversial pipeline in California, which is currently caught in a legal tug-of-war between federal officials and state regulators.
Despite raising $250 million in November, the business reported having roughly $98 million remaining at the close of last year.
SOC Price Action: Sable Offshore shares have dropped more than 70% over the past six months and were trading 8.88% lower at $8.22 at the time of publication, according to Benzinga Pro.
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