Pilgrim Global ICAV Acquires $15 Million in Sable Offshore Corp. Shares

In a notable recent transaction, Pilgrim Global ICAV, a key shareholder in Sable Offshore Corp., has augmented its investment by acquiring additional shares in the company. The purchase, executed on September 19, 2024, involved 750,000 shares of Sable Offshore Corp.’s common stock at a price of $20.00 per share, totaling a $15 million investment.

This acquisition elevates Pilgrim Global ICAV’s direct ownership in Sable Offshore Corp. to 8,791,001 shares. A footnote in the filing indicates that these securities are directly held by Pilgrim Global ICAV and may also be considered indirectly owned by Pilgrim Global Advisors LLC, the investment manager for Pilgrim Global ICAV.

The transaction was reported in a regulatory filing with the Securities and Exchange Commission by both Pilgrim Global ICAV and Pilgrim Global Advisors LLC. The filing from Pilgrim Global ICAV was signed by Executive Director Paul FitzGerald, and that from Pilgrim Global Advisors LLC was signed by Manager Procter J. Hug, IV.

Sable Offshore Corp., which operates in the crude petroleum and natural gas sector, is incorporated in Delaware and is based in Houston, Texas. The company, previously named Flame Acquisition Corp., has undergone a rebranding since its establishment.

Investors and market observers are typically attentive to such filings to assess insider sentiment and the financial maneuvers of major shareholders. These filings promote transparency and provide ongoing updates regarding the activities of significant investors in publicly traded companies.

In other recent developments, Sable Offshore Corp. successfully raised $150 million through a private placement, issuing 7,500,000 shares of common stock to institutional investors. The proceeds are earmarked for capital expenditures, working capital, and general corporate needs. TD Cowen and Jefferies acted as joint placement agents for this transaction, with Intrepid Partners contributing as the co-placement agent.

Additionally, Sable Offshore announced the exercise of outstanding warrants, generating $64.82 million and resulting in the issuance of 5,637,347 shares of common stock. Jefferies has also initiated coverage on Sable Offshore Corp. stock with a Buy rating, emphasizing the company’s robust free cash flow potential due to its distinct offshore asset, SYU.

In regulatory matters, Sable Offshore faced hurdles with the recent approvals of pipelines Line 324/325 by the Office of the State Fire Marshal and is now poised to acquire permits from Santa Barbara County for safety valve installations. The California Office of State Fire Marshal upheld Sable Offshore Corp.’s 2021 environmental plan, following the company’s efforts to comply with California State Assembly Bill 864, which seeks to mitigate the environmental impacts of oil spills.

These updates highlight the recent activities surrounding Sable Offshore Corp.

As Pilgrim Global ICAV strengthens its position in Sable Offshore Corp., a closer examination of the company’s financial health and market performance reveals a complex scenario. Sable Offshore Corp. has experienced a notable stock decline recently, with a one-week price total return of -11.38%. This decline may have drawn the attention of Pilgrim Global ICAV as an opportune acquisition moment.

The company’s current market capitalization is approximately $1.5 billion, indicating a substantial footprint in the crude petroleum and natural gas sector. However, Sable Offshore Corp. faces challenges, as indicated by reports suggesting potential difficulties in meeting interest payments on its debt, evidenced by its negative P/E ratio of -2.59 and an even smaller adjusted P/E ratio of -5.98 for the last twelve months as of Q2 2024.

Despite the recent purchase by Pilgrim Global ICAV, Sable Offshore Corp. is trading at a high Price/Book ratio of 12.41, implying that the stock may be overvalued relative to its book value. Analysts predict that the company is unlikely to be profitable this year, raising concerns for potential investors. On a brighter note, Sable Offshore’s liquid assets currently exceed its short-term obligations, reflecting effective liquidity management.

For those interested in a deeper analysis, further insights into Sable Offshore Corp.’s financials and market performance are available through various financial platforms.