Sable Offshore chief executive earned $76m despite $410m loss
James Flores, chairman and chief executive of Sable Offshore, was Houston's highest-paid executive in 2025, earning $76 million comprising a $1.3 million base salary, a $3.9 million bonus and approximately $69 million in stock. However, his company sold no crude oil in 2025 and reported a net loss of $410.2 million. The stark contrast between executive compensation and company performance has drawn attention, particularly given ongoing controversy surrounding Sable's California pipeline operations.
Sable Offshore, based in Texas, operates pipelines in California and purchased the Santa Ynez Unit pipeline in 2024. The pipeline had been closed following a 2015 rupture that caused one of California's worst oil spills, releasing 140,000 gallons and blackening beaches across 150 miles. Sable was permitted to restart operations on 14 March 2026 following an emergency order from US Energy Secretary Chris Wright, citing national security concerns related to the Iran conflict. The move prompted fierce opposition from California Democratic leadership and environmental groups, with Governor Gavin Newsom stating that the company was defying court orders.
- CEO earned $76 million from company posting $410 million loss and selling no crude
- Sable Offshore permitted to restart disputed California pipeline in March 2026
- Democratic leaders and environmentalists oppose restart, say court orders ignored
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Sable Offshore is an American oil and gas company based in Texas that operates pipelines. In 2025, its chief executive James Flores was paid $76 million, making him Houston's highest-paid executive, despite the company posting a $410 million loss and producing no crude oil that year. The contrast between his substantial pay package and his company's financial performance has raised questions about executive compensation practices.
The controversy surrounding Sable intensified when it purchased California's Santa Ynez Unit pipeline in 2024. This pipeline had been shut down since 2015 after a rupture released 140,000 gallons of oil, polluting 150 miles of California coastline. The closure had lasted over a decade as regulators and environmentalists opposed reopening the ageing infrastructure.
In March 2026, the US Energy Secretary authorised the pipeline to restart, citing national security concerns linked to regional tensions with Iran. California's governor and environmental groups opposed the decision, arguing that the company was circumventing legal challenges to the restart. The situation reflects broader tensions between federal energy security priorities and state-level environmental and safety concerns.
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Originally published by Daily Mail as “Houston’s best paid executive is oil baron who made $76m last year even though his company sold no crude and posted huge loss”.