Morningstar Rating

Stock Research and Analysis

by Stephen Ellis

Bulls Say

We estimate the net asset value of Seadrill's rigs to be around $6 billion, or $12 per share.
Seadrill owns one of the newest and most advanced deep-water fleets in the world.
Seadrill's opportunistic investing talents have generated hundreds of millions of dollars in gains for shareholders. Read more 

Bears Say

The 2014 and 2015 offshore market outlook is growing more challenging. Seadrill highlighted delays in capital spending on the part of the oil and gas companies, which means a lower level of fixtures, lead times, and contract durations and an increase in the number of rig sublets.
Seadrill's leveraged balance sheet could topple under its own weight during a sustained downturn in deep-water drilling.
Seadrill takes on additional financing risk by ordering many of its deep-water rigs without a contract in place. Read more 

Management

We're not fans of Seadrill's conflicted board and related-party arrangements, but we acknowledge the superb capital-allocation skills of John Fredriksen and the Seadrill management team. Seadrill has grown to be one of the world's largest deep-water   Read more 

Profile

Seadrill is one of the world's largest deep-water drillers. John Fredriksen founded the latest incarnation of the company in 2005; he previously built Frontline into one   Read more 

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