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| Subsequent Events | Note 10 — Subsequent Events The Company evaluated subsequent events and transactions that occurred after the unaudited condensed consolidated balance sheet date up to the date that the unaudited condensed consolidated financial statements were issued. Based upon this review, the Company, other than as previously described herein, did not identify any subsequent events that would have required adjustment or disclosure. in the financial statements. 2026 Refinancing Transactions On July 2, 2026, Sable consummated the 2026 Refinancing Transactions. Additional details regarding the 2026 Refinancing Transactions are disclosed in Note 1—Organization, Business Operations, and Going Concern and the Company’s Current Report on Form 8-K filed with the SEC on July 2, 2026. Additionally, a summary of the 2026 Refinancing Transactions is provided below. Convertible Notes Offering. The Company issued $345.0 million aggregate principal amount of 6.5% Convertible Senior Notes due 2031, inclusive of the underwriters’ full exercise of a $45.0 million over-allotment option. The Convertible Notes are senior unsecured obligations, carry an initial conversion price of approximately $4.00 per share (conversion rate of 249.7502 shares per $1,000 principal), and are subject to customary make-whole, redemption (on or after July 6, 2029, contingent on a 175%-of-conversion-price stock trigger), and put rights (noteholder repurchase right on July 6, 2029). Net proceeds from the offering of the notes were approximately $332.5 million. The offering of the notes was made pursuant to the Company’s shelf registration statement on Form S-3 which became effective on May 1, 2025 (the “Form S-3”), and closed on July 2, 2026. Common Stock Offering. The Company issued 37,337,662 shares of Common Stock (32,467,533 including the exercise in full of the underwriters’ option to purchase 4,870,129 additional shares of Common Stock), generating approximately $107.0 million of net proceeds. The offering of Common Stock closed concurrently with the offering of the Convertible Notes on July 2, 2026, pursuant to the Form S-3. New Senior Secured Credit Facilities. The Company entered into (i) a $500.0 million senior secured reserve-based revolving credit facility (initially subject to a $0.00 borrowing base, maturing December 15, 2028), and (ii) a $675.0 million senior secured Term Loan B (fully drawn at closing, maturing December 15, 2028). The Term Loan B bears interest at 15.00% per annum, amortizes quarterly (2.5% for Q3/Q4 2026, increasing to 5.0% thereafter), and requires mandatory prepayment of 100% of excess cash flow (subject to a $25.0 million minimum liquidity requirement) and 100% of net proceeds from certain asset sales. The facility also carries a 1.25x minimum multiple-on-invested-capital requirement at repayment, maturity or acceleration, and a tiered prepayment fee (1.00%–3.00%) through the maturity date. An Exxon Mobil affiliate holds $299.17 million of the Term Loan B as an initial lender. The facilities are secured by first-priority liens on substantially all Company and material subsidiary assets and are subject to customary affirmative, negative, and financial covenants, including a 3.00x maximum leverage ratio and 1.00x minimum current ratio under the Senior Revolver (once a borrowing base is established). Commodity Hedging Arrangements Subsequent to the completion of the 2026 Refinancing Transactions, the Company entered into derivative hedging transactions in July 2026, structured as costless collars, to manage its exposure to fluctuations in crude oil prices. Hedged volumes are presented in thousands of barrels per day (“Mbo/d”). These derivative instruments were not designated as hedges for accounting purposes and, accordingly, will be recorded at fair value each period, with changes in fair value recognized in earnings. The material terms of these arrangements are summarized below:
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