Sable Offshore Corp. (NYSE:SOC) shares tumbled on Friday after Hunterbrook Media updated its investigation into the company and California Attorney General Rob Bonta filed a lawsuit against the Trump administration to block the restart of oil transport through the Sable Pipeline.

• SOC stock plunged on Friday. See the chart here. 

Hunterbrook Media claims that the project remains a long shot despite the company’s optimistic timelines. Sable is “quickly running out of cash” and may never actually reach the point of selling oil, according to Hunterbrook Capital, which has taken a short position on the stock.

Benzinga reached out to Sable for comment, but did not receive an immediate reply. 

The “Eco-Nazi” Controversy: Hunterbrook states it has leaked recordings that reveal CEO Jim Flores disparaging the California Coastal Commission (CCC) as having an “eco-Nazi attitude” which could make securing the required Coastal Development Permits nearly impossible.

State Safety Compliance: Under California law SB 237, Sable must install specific safety valves that they have reportedly struggled to implement, adding further technical and regulatory delays.

Local Opposition: Santa Barbara County has already moved to deny the transfer of essential permits from Exxon to Sable, citing the history of the 2015 Refugio spill. On Friday, California Attorney General Bonta filed a lawsuit against the Trump administration to block the restart of oil transport through the Sable Pipeline.

Financial Risk: Hunterbrook Capital has taken a short position on the stock, asserting that Sable is “quickly running out of cash” and may never actually reach the point of selling oil.

The Bottom Line

Sable Offshore is currently caught in a pincer movement as federal regulators attempt to greenlight the project, but California has launched a major lawsuit to stop it. 

Combined with a CEO who has allegedly alienated local regulators and a balance sheet that is rapidly depleting, Hunterbrook sees the pipeline's future as an increasingly “pipe dream.”

SOC Price Action: Sable Offshore shares fell 15.89% to $10.43 on Friday, according to data from Benzinga Pro. 

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