Seadrill (SDRL) Analysis
Company Overview:
Seadrill provides offshore contract drilling services for the oil and natural gas industry. The company achieved a record day rate of $545,000 for a one-well contract in Q1 2024, the highest in the current cycle, significantly boosting its Q2 earnings outlook.
Key Highlights:
CEO Simon Johnson: Emphasized a strong start to the year with safe, efficient operations, high day rates, and capital returns to shareholders.
Competitive Fleet: Seadrill's fleet and strong balance sheet are expected to sustain durable earnings and capital returns as the cycle progresses.
Order Backlog: Approximately $2.8 billion, including $108 million in new contracts since February.
New Contracts: $32 million contract in South Korea for the drillship West Capella and an $86 million six-month extension in the U.S. Gulf of Mexico for the drillship West Neptune.
Investment Outlook:
Bullish Outlook: We are bullish on
SDRL above the $47.00-$48.00 range.
Upside Potential: With an upside target set at $78.00-$80.00, investors should consider Seadrill's strong performance, high day rates, and substantial order backlog as key drivers for potential stock appreciation.
📈🌊 Monitor Seadrill for promising investment opportunities! #SDRL #OffshoreDrilling 🛢️🚀
Seadrill provides offshore contract drilling services for the oil and natural gas industry. The company achieved a record day rate of $545,000 for a one-well contract in Q1 2024, the highest in the current cycle, significantly boosting its Q2 earnings outlook.
Key Highlights:
CEO Simon Johnson: Emphasized a strong start to the year with safe, efficient operations, high day rates, and capital returns to shareholders.
Competitive Fleet: Seadrill's fleet and strong balance sheet are expected to sustain durable earnings and capital returns as the cycle progresses.
Order Backlog: Approximately $2.8 billion, including $108 million in new contracts since February.
New Contracts: $32 million contract in South Korea for the drillship West Capella and an $86 million six-month extension in the U.S. Gulf of Mexico for the drillship West Neptune.
Investment Outlook:
Bullish Outlook: We are bullish on
SDRL above the $47.00-$48.00 range.Upside Potential: With an upside target set at $78.00-$80.00, investors should consider Seadrill's strong performance, high day rates, and substantial order backlog as key drivers for potential stock appreciation.
📈🌊 Monitor Seadrill for promising investment opportunities! #SDRL #OffshoreDrilling 🛢️🚀
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