Why did Sable Offshore's operating expenses surge in Q2 2024?

Sable Offshore's operating expenses surged in Q2 2024 due to several factors:

1. **Business Combination Costs**: The company's operating expenses were influenced by the costs associated with the business combination with Flame Acquisition Corp. This included the acquisition of the Santa Ynez Unit, which comprised 16 Outer Continental Shelf leases, associated pipelines, and other assets. Such transactions typically involve significant expenses related to due diligence, legal fees, and integration costs.
2. **ExxonMobil Asset Handover**: The company incurred expenses related to the asset handover with ExxonMobil. This involved hiring employees and other operational costs associated with the transfer of assets and responsibilities.
3. **Pipeline Maintenance and Repair**: Sable Offshore was required to undertake maintenance and repair work on its offshore pipelines, which contributed to the surge in operating expenses. This included addressing pipeline corrosion and other issues, which required significant resources and incurred additional costs.

In summary, the surge in operating expenses in Q2 2024 was primarily due to the costs associated with the business combination, asset handover with ExxonMobil, and pipeline maintenance and repair work. These factors collectively contributed to the increased operational expenses during that quarter.