Slide 1: Sable Offshore Corp. Investor Presentation August 2023
Exhibit 99.1 Sable Offshore Corp. Investor Presentation August 2023
Slide 2: Disclaimer
Disclaimer CONFIDENTIALITY The information in this presentation, together with oral statements made in connection herewith, is highly confidential. The distribution of this presentation by an authorized recipient to any other person is unauthorized. Any photocopying, disclosure, reproduction or alte
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) PARTICIPANTS IN A SOLICITATION Sable, the SPAC, and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in connection with certain matters related to the business combination and may have direct o
Slide 4: Disclaimer (Cont'd) - Use of Projections
Disclaimer (Cont’d) USE OF PROJECTIONS This presentation contains financial projections for Sable and the SPAC (as successor to Sable in the business combination) after giving effect to the business combination, including with respect to its future revenues, EBITDA, capital expenditures and non-GAAP
Slide 5: Key Transaction Highlights
Key Transaction Highlights Sable Offshore Corp. (“Sable”) has entered into an agreement to merge with Flame Acquisition Corp. (“FLME”, “Flame”, or the “Company”). Sable has separately agreed to acquire the Santa Ynez Field and associated assets (“Santa Ynez”, “SYU”, or the “Acquired Assets”) from Ex
Slide 6: Transaction Summary
Transaction Summary Summary of Proposed Transaction Indicative Transaction Overview 1 n Sable has entered into an agreement Sources of Funds ($MM) to acquire SYU from Exxon – (1) 3 1L Term Loan (Net of $19 MM Deposit) $623 proprietarily sourced by Sable / Flame SYU Oil Field and Associated managemen
Slide 7: Key Investment Highlights
Key Investment Highlights Santa Ynez & Sable are Highly Integrated, Synergistic Assets with a Compelling Investment Profile 1 Consistent with Flame Investment Thesis ü 2 Experienced Executive & Operations Team with Offshore California Expertise ü 3 Commitment to ESG & Best-in-Class Operations ü 4 Oi
Slide 8: Strategically Aligned with Flame Thesis
1 Strategically Aligned with Flame Thesis n Sable management targeting n Asset acquisition metrics are very Attractive Conservative long-term leverage ratios of ~1.0x favorable against intrinsic value üü to maximize flexibility for Returns Leverage Profile and public benchmarking distributions and d
Slide 9: Sable – Management Team
2 Sable – Management Team Sable has Re-Assembled its Premier Management and Operations Team n Mr. Flores is Sable’s founder and has served as the Chairman and Chief Executive Officer since its inception Jim Flores n From May 2017 until February 2021, Mr. Flores served as Chairman, Chief Executive Of
Slide 10: Sable – Management Team History of Value Creation
2 Sable – Management Team History of Value Creation 1995 2000 2005 2010 2015 1992 2002 2003 2010 2012 2013 2014 Started Flores & Rucks; Plains Exploration & Ocean Energy Acquired Eagle Ford assets Acquired Deepwater GOM Sold PXP to Sold Eagle Ford assets to IPO’d in 1994 and later Production spinoff
Slide 11: Sable Management Team Has a Strong ESG & Operational Track Record in California
3 Sable Management Team Has a Strong ESG & Operational Track Record in California Sable Management Team is an Award-Winning California Operator Offshore Highlights § In 2004, Received Santa Barbara County’s First and Only “Resolution for Good Operator” Recognizing PXP’s Outstanding Operating Perform
Slide 12: SYU – Premier Offshore Project Developed by Exxon Over 40+ Years
4 SYU – Premier Offshore Project Developed by Exxon Over 40+ Years SYU Development Background n Discovered in 1968, over the course of 14 years Exxon consolidated more than a dozen offshore federal oil leases into a streamlined production unit known as SYU ─ SYU construction began in 1976 with Platf
Slide 13: SYU – Significant Production History & Significant Resource Potential
4 SYU – Significant Production History & Significant Resource Potential Santa Ynez Unit Overview n Between 1981 and 2014, SYU produced over 671 MMBoe ─ Production averaged 29 MBbl/d and 27 MMcf/d in 2014 (gross), the last full year when the asset was online ─ Low, stable decline anticipated of ~8% o
Slide 14: Wholly-Owned Infrastructure at Las Flores Canyon Reduces Cash Costs
5 Wholly-Owned Infrastructure at Las Flores Canyon Reduces Cash Costs Las Flores Canyon Cogeneration & Processing Facility n Fully integrated oil and gas processing facilities to be acquired by Sable for managing 100% of the SYU Produced Water produced volumes with Pipeline Transportation additional
Slide 15: Substantial Run-Rate Cash Flow Generation Once SYU Re-Start is Complete
6 Substantial Run-Rate Cash Flow Generation Once SYU Re-Start is Complete… Ability to Implement a Robust Shareholder Return Policy Once SYU is Online (1) Forecast & Financial Summary Overview of Financial Projections – “Run Rate” Annual Cash Flow (2) Strip $90 / $4.50 $80.00 / $4.50 n Run-Rate perio
Slide 16: Attractive Valuation Relative to Peer Group
7 …& Attractive Valuation Relative to Peer Group (1) (2) Category Acquired Asset Metric PF Multiple Peer Average st 1 Full Year Unlevered Free (4) (5) Highest Yield of the Peer Group $472 MM 47% 17% (3) Cash Flow Yield (%) st 42% Discount to Peer Group TEV / 1 Full Year (4) (5) $502 MM 2.0x 3.5x (3)
Slide 17: Favorable Operational & Financial Metrics
7 Favorable Operational & Financial Metrics ~28 MBoe/d n Substantial production base that is ~80% oil with decades of I Large Production Base Net Production Forecast productive history Once Online (1)(2) ~$48.90 / Boe n Supported by wholly owned infrastructure and access to Brent oil II High Margin
Slide 18: Additional Detail
Additional Detail
Slide 19: SYU Acreage Overview
SYU Acreage Overview Acreage Overview n Offshore Position ─ 16 Federal Leases, ~76,000 acres Bakersfield Los Angeles Refineries San Francisco Refineries ─ First leased in 1968 n Santa Ynez Unit Agreement ─ Effective date: November 12, 1970 Line 903: Permitted, Upgrades / Repairs Construction Underwa
Slide 20: SYU Pipeline Status
SYU Pipeline Status Significant Planning Effort Underway to Prepare for Restart n 4/1/21 AAPL submission to the California Fire Marshal (“OSFM”) for approval of the AB864/Consent Decree compliance plans n 12/4/21 OSFM accepts AAPL’s AB 864 Supplemental Implementation Plan n 3Q22 zoning clearance app
Slide 21: Undrilled Inventory Overview
Undrilled Inventory Overview New Drill Inventory Overview n SYU comprises several discrete fault bound accumulations; compartments defined by pressure compartments n 2015 analysis identified step out potential for untested fault compartments or sub accumulations ─ Technical opportunity inventory bas
Slide 22: Substantial Resource Base
Substantial Resource Base (1)(2) Contingent Resource Summary Net Estimated Contingent Resources and Production Estimated Cash Flows ($MM) (3) (4) Oil Gas NGL Total 2024E Prod. R / P Capex PV-10 Category (MMBbls) (MMcf) (MMBbls) (MMBoe) (MBoe/d) (x) ($MM) Current Strip 5% Strip Inc. 10% Strip Inc. (5
Slide 23: Substantial Resource Base – Sensitivity Analysis at $50/Bbl Brent
Substantial Resource Base – Sensitivity Analysis at $50/Bbl Brent Price Scenario (1)(2) Contingent Resource Summary Net Estimated Contingent Resources and Production Estimated Cash Flows ($MM) (3) (4) Oil Gas NGL Total 2024E Prod. R / P Capex PV-10 Category (MMBbls) (MMcf) (MMBbls) (MMBoe) (MBoe/d)
Slide 24: Historical Net Lease Operating Expenses
Historical Net Lease Operating Expenses Overview of Historical Net Lease Operating Expenses ($MM) (1) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD 2023 (2) Production Oil Production (MMBoe) 9.2 8.9 3.0 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Gas Production (Bcf) 8.5 8.2 3.1 0.0 0.0 0.0 0.0 0.0 0.0
Slide 25: Ownership Analysis Across Redemption Levels
Ownership Analysis Across Redemption Levels Ownership Analysis Across Redemption Levels Redemption Levels 0.0% 50.0% 100.0% Investor Units Shares (MM) Ownership (%) Shares (MM) Ownership (%) Shares (MM) Ownership (%) (1) Merger Consideration Shares 3.0 5.3% 3.0 5.8% 3.0 6.3% Founders Shares 7.2 12.8
Slide 26: Summary Risk Factors
Summary Risk Factors Risks Related to Restart of Production We need to satisfy a number of permitting obligations and other requirements before we can restart production. The requirements to restart Lines 901 and 903 include those set forth in a federal court consent decree. While the operator of th
Slide 27: Summary Risk Factors (Cont'd)
Summary Risk Factors (Cont’d) The listing of a species as either “threatened” or “endangered” under the federal and/or California Endangered Species Act could result in increased costs, new operating restrictions, or delays in our operations, which could adversely affect our results of operations an