Seadrill Secures Two Contracts Worth $260M, Enhancing Revenue Visibility

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: Apr 22 2026

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SDRL+1.28%

Should l Buy SDRL?

Source: seekingalpha

Contract Expansion: Seadrill has secured two contracts with Harbour Energy's LLOG Exploration subsidiary, adding approximately $260 million to its contract backlog, indicating strong demand and a stable revenue source in the market.
Deepwater Drillship Contracts: The West Neptune ultra-deepwater drillship has been awarded a 365-day contract extension set to commence in September, while the West Vela has secured a 270-day program expected to begin in August for deployment in the U.S. Gulf, further solidifying Seadrill's position in the deepwater drilling market.
Long-Term Partnership: Seadrill noted that the West Neptune is entering its second decade under continuous contract with LLOG, showcasing the success of their long-term partnership built on performance, which enhances customer trust and market competitiveness.
Cash Flow Support: Seadrill President and CEO Samir Ali emphasized that securing this backlog enhances revenue visibility and supports free cash flow generation, helping the company maintain stability amid near-term softness in the U.S. Gulf market.

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Analyst Views on SDRL

Wall Street analysts forecast SDRL stock price to fall

5 Analyst Rating

3 Buy

2 Hold

0 Sell

Moderate Buy

Current: 47.710

Low

32.00

Averages

44.20

High

80.00

Current: 47.710

Low

32.00

Averages

44.20

High

80.00

Barclays

Eddie Kim

Equal Weight -> Overweight

upgrade

$41 -> $59

2026-05-07

New

Reason

Barclays

Eddie Kim

Price Target

$41 -> $59

AI Analysis

2026-05-07

New

upgrade

Equal Weight -> Overweight

Reason

Barclays analyst Eddie Kim upgraded Seadrill to Overweight from Equal Weight with a price target of $59, up from $41. The firm adjusted ratings and price targets in the energy services group, saying the sector faces its best setup in 20 years. Barclays upgraded is industry view to Positive from Neutral. Once the \"supply shock\" ends, oil prices will be structurally higher with upstream spending accelerating in 2027 and 2028, the analyst tells investors in a research note. Barclays sees this driving an earnings revision cycle and potential re-rating of stocks. The events in the Middle East will result in structurally higher oil prices and an ensuing multi-year upstream spending cycle to drive outperformance of the energy services sector, according to Barclays. The firm upgraded six names and downgraded two

BTIG

Buy

upgrade

$50 -> $55

2026-04-17

Reason

BTIG

Price Target

$50 -> $55

2026-04-17

upgrade

Buy

Reason

BTIG raised the firm's price target on Seadrill to $55 from $50 and keeps a Buy rating on the shares. While floater demand is softening in the U.S. Gulf and Brazil, rigs rolling off contracts will reposition to growing markets across Africa, Asia, and the Mediterranean, which should see the market start to tighten in 2027, the analyst tells investors in a research note. BTIG adds it remains bullish on Seadrill owing to the view that utilization and pricing will push higher over the next 2 years, which should see free cash flow inflect higher.

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About SDRL

Seadrill Limited is an offshore drilling contractor. The Company is engaged in providing worldwide offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drill ships, semi-submersible rigs, and jack-up rigs for operations in shallow to ultra-deepwater in both benign and harsh environments. Its fleet portfolio includes West Phoenix, West Aquarius, West Eclipse, Sevan Louisiana, West Capella, West Gemini, West Tellus, West Neptune, West Jupiter, West Saturn, West Carina, West Polaris, West Auriga, West Vela, West Castor, West Tucana, West Telesto, and West Elara. Its drill ships are self-propelled ships equipped for drilling offshore in water depths ranging from approximately 1,000 to 12,000 feet and are positioned over the well through a computer-controlled thruster system. Its customers include oil super-majors, state-owned national oil companies, and independent oil and gas companies. It also provides management services.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Seadrill Scheduled to Announce Q1 Earnings on May 11

2 days agoseekingalpha

Earnings Announcement: Seadrill (SDRL) is set to release its Q1 2023 earnings report on May 11 before market open, with consensus EPS estimate at -$0.27 and revenue forecast at $325.53 million, reflecting a 2.8% year-over-year decline.
Performance Track Record: Over the past year, Seadrill has achieved a 100% accuracy rate in beating EPS estimates and a 75% rate for revenue estimates, indicating the company's reliability in financial forecasting.
Estimate Adjustments: In the last three months, EPS estimates have seen one upward revision and two downward adjustments, while revenue estimates experienced two upward and two downward revisions, highlighting market uncertainty regarding the company's future performance.
Investor Focus: Investors are expected to closely monitor the upcoming earnings report to assess Seadrill's performance in the current market environment and its growth potential, particularly amid volatility in the oil and gas sector.

SEADRILL LIMITED: BARCLAYS INCREASES TARGET PRICE FROM $41 TO $59

2 days agomoomoo

Company Overview: Seadrill Limited is a company involved in offshore drilling services.
Target Price Increase: Barclays has raised the target price for Seadrill Limited from $41 to $59.

SEADRILL LIMITED: BARCLAYS UPGRADES RATING TO OVERWEIGHT FROM EQUAL-WEIGHT

2 days agomoomoo

Company Overview: Seadrill Limited is a company involved in offshore drilling services.
Financial Update: Barclays has raised its weight rating on Seadrill, indicating a positive outlook on the company's performance.

Barclays: Best Time in Two Decades to Buy Oil Service Stocks

3 days agoCNBC

Sector Upgrade: Barclays upgraded the U.S. energy service and technology sector from neutral to positive, raising ratings for oil service providers like Halliburton from equal weight to overweight, reflecting confidence in the sector's future performance.
Oil Price Volatility: Although oil prices fell to $90.51 per barrel due to reports of a potential U.S.-Iran deal, nearly 20% down from early April's peak, Barclays analysts believe Middle Eastern events will lead to structurally higher oil prices, driving a multi-year upstream spending cycle.
Positive Outlook for Halliburton: Barclays raised Halliburton's 12-month price target from $37 to $55, implying a 36% upside from Wednesday's close, indicating significant benefits for the company amid rising oil prices.
Offshore Services Potential: Barclays also upgraded Patterson-UTI Energy and ProPetro Holding to overweight, forecasting an increase in active deepwater rigs from 122 to 131 by the end of 2027, which will provide a tailwind for offshore oil service companies.