Sable Offshore Corp. Investor Presentation December 2023
Key Transaction Highlights Sable Offshore Corp. (Sable) has entered into an agreement to merge with Flame Acquisition Corp. (FLME, Flame, or the Company). Sable has separately agreed to acquire the Santa Ynez Field and associated assets…
Transaction Summary Summary of Proposed Transaction Indicative Transaction Overview 1 Sable has entered into an Sources of Funds (MM) agreement to acquire SYU from 3 1L Term Loan (Net of 19 MM Deposit) (1) 623 Exxon proprietarily…
Key Investment Highlights Santa Ynez & Sable are Highly Integrated, Synergistic Assets with a C ompelling Investment Profile Consistent with Flame Investment Thesis 1 Experienced Executive & Operations Team with Offshore…
1 Strategically Aligned with Flame Thesis Sable management targeting Asset acquisition metrics are Conservative long-term leverage ratios of Attractive very favorable against intrinsic Leverage 1.0x to maximize flexibility…
2 Sable Management Team Sable has Re-Assembled its Premier Management and Operations Team Mr. Flores is Sables founder and has served as the Chairman and Chief Executive Officer since its inception Jim Flores From May 2017 until…
2 Sable Management Team History of Value Creation 1995 2000 2005 2010 2015 1992 2002 2003 2010 2012 2013 2014 Started Flores & Rucks; Plains Exploration & Ocean Energy Acquired Eagle Ford assets Acquired Deepwater GOM Sold PXP to…
3 Sable Management Team Has a Strong ESG & Operational Track Record in California Sable Management Team is an Award-Winning California Operator Offshore Highlights In 2004, Received Santa Barbara Countys First and Only Resolution…
4 SYU Premier Offshore Project Developed by Exxon Over 40+ Years SYU Development Background Discovered in 1968, over the course of 14 years Exxon consolidated more than a dozen offshore federal oil leases into a streamlined…
4 SYU Significant Production History & Significant Resource Potential Santa Ynez Unit Overview Between 1981 and 2014, SYU produced over 671 MMBoe Production averaged 29 MBbl/d and 27 MMcf/d in 2014 (gross), the last full year when…
5 Wholly-Owned Infrastructure at Las Flores Canyon Reduces Cash Costs Las Flores Canyon Cogeneration & Processing Facility Fully integ rated oil and gas processing facilities to be acquired by Sable for managing 100% of the…
6 Substantial Run-Rate Cash Flow Generation Once SYU Re-Start is Complete Ability to Implement a Robust Shareholder Return Policy Once SYU is Online Forecast & Financial Summary Overview of Financial Projections Run Rate Annual Cash…
7 & Attractive Valuation Relative to Peer Group Category Acquired Asset Metric (1) PF Multiple Peer Average (2) Highest Yield of the Peer Group 1 st Full Year Unlevered Free 453 MM (4) 45% 16% (5) Cash Flow Yield (%) (3)…
7 Favorable Operational & Financial Metrics 28 MBoe/d Substantial production base that is 80% oil with decades of I Large Production Base Net Production Forecast Once Online productive history 47.03 / Boe (1)(2) Supported by wholly…
Additional Detail
SYU Acreage Overview Acreage Overview Offshore Position 16 Federal Leases, 76,000 acres Bakersfield San Francisco Refineries Los Angeles Refineries First leased in 1968 Santa Ynez U nit Agreement Effective date: November 12,…
SYU Pipeline Status Significant Progress Achieved in Preparation for Restart 4/1/21 AAPL submission to the California Fire Marshal (OSFM) for approval of the AB864/Consent Decree compliance plans 12/4/21 OSFM accepts AAPLs AB 864…
Undrilled Inventory Overview New Drill Inventory Overview SYU comprises several discrete fault bound accumulations; compartments defined by pressure compartments 2015 analysis identified step out potential for untested fault…
Substantial Resource Base Contingent Resource Summary (1)(2) Net Estimated Contingent Resources and Production Estimated Cash Flows (MM) (3) (4) Oil Gas NGL Total 2024E Prod. R/P Capex PV-10 Category (MMBbls) (Bcf) (MMBbls)…
Substantial Resource Base Sensitivity Analysis at 50/Bbl Brent Price Scenario Contingent Resource Summary (1)(2) Net Estimated Contingent Resources and Production Estimated Cash Flows (MM) (3) (4) Oil Gas NGL Total 2024E Prod. R/P…
Historical Net Lease Operating Expenses Overview of Historical Net Lease Operating Expenses (MM) (1) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2023 Production (2) Oil Production (MMBoe) 9.2 8.9 3.0 0.3 0.0 0.0 0.0…
Ownership Analysis Across Redemption Levels Ownership Analysis Across Redemption Levels Redemption Levels 0.0% 50.0% 100.0% Investor Units Shares (MM) Ownership (%) Shares (MM) Ownership (%) Shares (MM) Ownership (%) (1)…
Summary Risk Factors Risks Related to Restart of Production We need to satisfy a number of permitting obligations and other requirements before we can restart production. The requirements to restart Lines 901 and 903 include those set…
Summary Risk Factors (Contd) The listing of a species as either threatened or endangered under the federal and/or California Endangered Species Act could result in increased costs, new operating restrictions, or delays in our…
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