Sable Offshore Faces Federal Probes Over Insider Trading Allegations

The Houston-based oil company is under investigation by the SEC and U.S. Attorney's Office amid claims its CEO shared undisclosed financial information.

Published on Feb. 6, 2026

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Federal regulators are investigating Houston-based oil company Sable Offshore over allegations that its chief executive shared insider information with a select group of investors. Sable said it received subpoenas from the SEC and the U.S. Attorney's Office for the Southern District of New York in December, requesting documents related to the alleged sharing of insider information, stock trading, and other issues. The company said it is cooperating with the requests, which could result in civil and criminal penalties.

Why it matters

The federal probe adds to Sable's legal troubles, as the company is already facing a separate lawsuit alleging insider trading by company 'insiders' and a shareholder lawsuit over claims of breach of fiduciary duties and misleading statements. The investigation comes as Sable struggles to stay afloat while waiting for permission to ramp up production and pipeline operations at its offshore California project, which was the site of a major oil spill in 2015.

The details

According to the report, the federal investigations pertain to 'issues raised' in October by Hunterbrook, which published leaked audio and group messages that appear to show Sable's CEO Jim Flores discussing undisclosed financial filings and prospects with a select group of investors. Sable said it received subpoenas from the SEC and the U.S. Attorney's Office in December, requesting documents related to the alleged sharing of insider information, general stock trading, and other unspecified issues.

  • In October, Hunterbrook published leaked audio and messages allegedly showing Sable's CEO discussing undisclosed information with investors.
  • In December, Sable received subpoenas from the SEC and U.S. Attorney's Office requesting documents related to the insider trading allegations.

The players

Sable Offshore

A Houston-based oil company that is under federal investigation over allegations of insider trading.

Jim Flores

The CEO of Sable Offshore, who is alleged to have shared undisclosed financial information with a select group of investors.

Hunterbrook

A company that published leaked audio and messages allegedly showing Sable's CEO discussing undisclosed information with investors.

Securities and Exchange Commission (SEC)

The federal agency investigating Sable Offshore over the insider trading allegations.

U.S. Attorney's Office for the Southern District of New York

The federal prosecutor's office also investigating Sable Offshore over the insider trading allegations.

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What they’re saying

“We must cooperate with the requests, which could result in both civil and criminal penalties.”

— Sable Offshore (Sable Offshore filing)

What’s next

The judge will decide on whether to allow Sable Offshore's CEO, Jim Flores, to be released on bail as the investigations continue.

The takeaway

The federal investigations into Sable Offshore's alleged insider trading practices highlight the ongoing challenges facing the oil and gas industry, particularly around transparency and accountability. The case underscores the importance of robust regulatory oversight to protect investors and the public interest.