Sable Offshore (SOC) Plunges 28.86% Amid Regulatory Scrutiny and Debt Crisis

Sable Offshore Corp (SOC) plunged 28.86% in pre-market trading on Nov 17, 2025, marking its most severe single-day decline in recent history. This sharp drop follows weeks of volatility amid deteriorating fundamentals and regulatory scrutiny.

The company faces a dire financial position with a -209.56% ROE and a debt-to-equity ratio of 2.58. Q2 2025 results revealed a $128 million net loss and $754 million negative working capital. Technical analysis highlights a bearish trend, with prices collapsing from $6.05 to $4.50 amid declining volumes. Key support at $4.21 and resistance near $6.05 define critical price levels for near-term action.

Recent catalysts include compliance issues in California and a $1.7 billion floating storage initiative. A proposed $200 million equity raise triggered an 8% selloff earlier in November. While Roth Capital maintains a Buy rating, analysts caution against short-term headwinds from operational inefficiencies and liquidity constraints. The stock's asset turnover ratio of zero underscores systemic operational challenges.

Backtesting suggests a short-selling strategy below $4.21 could capitalize on the established downtrend. Traders should monitor $6.05 resistance for potential reversal signals. Position sizing should account for the stock's extreme volatility and leverage risks inherent in its 2.58 debt-to-equity profile. A stop-loss above $4.50 may be prudent given the asset turnover weakness.