Sable Offshore Corp. (NYSE: SBLE) experienced a notable decline in its share price Tuesday morning, falling about 13% following the company's disclosure of an "at the market" equity offering program that could total $250 million.
In a filing with the U.S. Securities and Exchange Commission, Sable said it has entered into a Sales Agreement with TD Securities and Jefferies to act as agents for the potential sales. Under the terms set out in the filing, the company may, at its discretion, sell up to $250 million of common stock through those agents. The filing makes clear that there is no firm requirement that any shares be sold.
The agents would receive a commission of up to 3.0% of the gross sales price for each share sold through the arrangement. Sable described the plan as an "at the market offering," a form of distribution defined in Rule 415 under the Securities Act of 1933.
The company indicated the Sales Agreement was established on February 2, 2026, and that it filed a prospectus supplement with the SEC on the same date. The offering is being made pursuant to an existing shelf registration statement that the SEC previously declared effective on May 1, 2025.
Per the agreement, either Sable or the agents may terminate the arrangement at any time by providing ten days' notice to the other party, and Sable noted that it could suspend solicitation and sales under the program at any time.
Market participants typically react to announcements of additional share issuance with downward price pressure because such moves introduce the possibility of dilution - reducing earnings per share and lowering existing owners' percentage stakes. The roughly 13% drop in Sable Offshore's stock reflects this common investor concern about potential dilution from new share issuances.
Contextual summary
The filing and agreement dates, the maximum aggregate offering amount, the agents involved, the commission rate, the shelf registration effective date, and the termination provisions are disclosed in the SEC filing and reflected in the company's prospectus supplement.