Here’s why – from p. 43 of Sable’s Q3 report (emphasis added):
Going Concern. As a result of the Company’s primary purchaser’s [Chevron] temporary curtailment of its purchases of the Company’s crude oil beginning October 6, 2026, as described in Note 1 — Organization, Business Operations, and Going Concern, management does not currently expect operating cash flows, together with the remaining proceeds of the 2026 Refinancing Transactions, to be sufficient to fund operating expenses and service indebtedness in the near term. The curtailment of sales from our primary purchaser continued throughout October 2026 and remains ongoing as of the date of this filing. In response, the Company has reduced production to manage crude oil inventory levels at its dedicated storage facilities. In early November 2026, the Company began selling crude oil to additional purchasers, and the Company anticipates that its primary purchaser will resume purchasing barrels in the near term. However, the timing and volume of any such resumption are uncertain. Refer to the section entitled “Part II, Item 1A. Risk Factors—We depend upon a limited number of purchasers for the sale of most of our crude oil. The loss of one or more of these purchasers could, among other factors, limit our access to suitable markets for the crude oil we produce.”
Sable’s Santa Ynez Unit
