Why These Energy Stocks are Gaining This Week

2. Sable Offshore Corp. (NYSE:SOC) 

Share Price Gains Between Jan. 7 – Jan. 14: 30.89%

Sable Offshore Corp. (NYSE:SOC) is an independent upstream company focused on developing the prolific Santa Ynez Unit in federal waters offshore California.

Sable Offshore Corp. (NYSE:SOC) has more than doubled in value over the last month after it scored a big win by receiving federal approval to restart its controversial oil and gas pipeline near Santa Barbara. The company had been facing significant legal challenges from state and local authorities in California, but it overcame the opposition after the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) approved its request to shift the pipeline to federal rather than state oversight. However, the local resistance against the pipeline continued, and Sable was hit with an emergency lawsuit seeking to block the restart on December 26.

The environmental groups filing the suit argued that PHMSA had ‘bypassed the required public notice, opportunity for public participation, statement of reasons for its decisions, and other conditions’ required under the federal Pipeline Safety Act. The federal regulator responded by saying that its emergency permits for Sable were based on a national energy emergency declared by President Trump last year. On January 2, the petition to stay PHMSA’s decision to take over oversight of Sable Offshore Corp. (NYSE:SOC)’s plans to restart the Santa Ynez unit was denied by a federal court, marking a major step forward for the company.

While the case wasn’t dismissed and responses and briefs are due over the next few months, Benchmark analyst Subash Chandra believes that Sable Offshore Corp. (NYSE:SOC)’s Santa Ynez Unit is ‘the closest it has been’ to resume production. On January 2, the firm reiterated its ‘Buy’ rating on SOC and assigned the stock a price target of $20, indicating an upside of over 77% from the current levels.