Here’s Why Sable Offshore (SOC) Surged in Q1

Tourlite Capital Management, an investment management firm, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets were under pressure during the first quarter due to Trump’s tariff announcement. The increased uncertainty following Liberation Day led to significant declines in several of the fund’s event-driven and value positions. Tourlite Fund, LP returned -4.6% for the first quarter of 2025. Since its inception, the fund has achieved annualized returns of 7.5%, compared to 9.0% and 0.5% for the S&P 500 and the Russell 2000 Indexes, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Tourlite Capital Management highlighted stocks such as Sable Offshore Corp. (NYSE:SOC). Sable Offshore Corp. (NYSE:SOC) is an oil and gas exploration and development company. The one-month return of Sable Offshore Corp. (NYSE:SOC) was -19.61%, and its shares gained 54.76% of their value over the last 52 weeks. On June 10, 2025, Sable Offshore Corp. (NYSE:SOC) stock closed at $22.92 per share, with a market capitalization of $2.25 billion.

Tourlite Capital Management stated the following regarding Sable Offshore Corp. (NYSE:SOC) in its Q1 2025 investor letter:

“Since our last letter,Sable Offshore Corp. (NYSE:SOC), an exploration and production (E&P) company, has made substantial progress in restarting operations at the Santa Ynez Unit, an offshore asset acquired from Exxon that had been offline since a pipeline spill. Notably, the California Coastal Commission (CCC) has retreated from its previous attempts to exert what we believed were unjust authority over Sable, who is now pursuing $268 million in damages from the CCC for lost revenue.

As of May 18th, Sable has completed all required repairs outlined in the Consent Decree governing the onshore pipeline restart. Seven of the eight pipeline segments have successfully passed hydrotesting, and production has resumed from six wells at the Santa Ynez Unit. Management expects oil sales to begin in July. Encouraged by strong early results, Sable has also revised its 2025 guidance, doubling projected daily production while simultaneously lowering lease operating expenses.”

Sable Offshore Corp. (NYSE:SOC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Sable Offshore Corp. (NYSE:SOC) at the end of the first quarter, which was 28 in the previous quarter. While we acknowledge the potential of Sable Offshore Corp. (NYSE:SOC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Sable Offshore Corp. (NYSE:SOC) and shared Tourlite Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.