Sable Offshore Hits Record Low Amidst Ongoing Sales Disruptions

Sable Offshore slumped 60.5% to a record low on Monday after the oil producer raised "substantial doubt" about its ability to continue as a going concern, citing strained liquidity due to sales disruption to its main buyer.

Shares of the company, which flagged its latest going-concern doubts, tumbled to 76 cents. They were last down 57.6%.

Here are more details:

• The ongoing purchase reductions by its main crude-oil buyer have forced the company to reduce production and are expected to leave it short of liquidity to meet obligations when they fall due

• Sable said it does not expect operating cash flow and remaining refinancing proceeds to cover near-term operating costs and debt payments

• In March, the company issued a going-concern warning due to its debt maturities and liquidity position, but that eased after refinancing transactions completed in July extended debt maturities and improved liquidity

• The latest disruption, which continued through the filing date, prompted the company to cut output to manage inventories

• Sable said it is looking at options to resolve near-term working capital constraints caused by the