Seadrill Limited: Constructive deepwater outlook as "energy security back in vogue"

Research evidence excerpt

Seadrill Limited: Constructive deepwater outlook as "energy security back in vogue"

Equity Research

U.S. Energy Services & Technology

13 May 2026

Seadrill Limited

Constructive deepwater outlook

as "energy security back in vogue" Earnings Review

SDRL posted a 'beat and raise' quarter with 1Q EBITDA well SDRL OVERWEIGHT

above estimates and FY26 EBITDA guidance raised by 5% at Unchanged

U.S. Energy Services &

the midpoint. Management provided a constructive Technology POSITIVE

Unchanged

deepwater outlook and said the current market environment Price Target USD 59.00

Unchangedcreates an opportunity for price increases from here.

Price (12-May-26) USD 49.96

Potential Upside/Downside +18.1%SDRL posted a 'beat and raise' quarter with 1Q EBITDA 57%/59% above Barclays/

Source: Bloomberg, Barclays Research

consensus and FY26 EBITDA guidance raised by 5% at the midpoint. Commentary from

SDRL management during the company's 1Q earnings call earlier this week was in many

Market Cap (USD mn) 3124ways a continuation of the constructive outlooks from NE and RIG over the past two

Shares Outstanding (mn) 62.53weeks. CEO Samir Ali noted that "energy security is back in vogue" following the Iran conflict

Free Float (%) 94.59with deepwater resources becoming "increasingly attractive and even better-positioned for

52 Wk Avg Daily Volume (mn) 0.9development". When asked in Q&A about the company's expected trajectory of leading-edge

Dividend Yield (%) N/Apricing, Mr. Ali did not provide specifics but said the current market environment "creates an

Return on Equity TTM (%) -2.67opportunity for rates to be pushed up further than they are today" given 1) the strongest

Current BVPS (USD) 45.82backlog cycle over the past 3-4 months since 2012 with 71 rig years added industrywide, 2) the