Seadrill Limited (NYSE: SDRL ) ranks among the best oil and gas drilling stocks to buy now . On May 11, Seadrill Limited (NYSE:SDRL) posted better-than-expected earnings for the first quarter of 2026…
Seadrill Limited (NYSE: SDRL ) ranks among the best oil and gas drilling stocks to buy now . On May 11, Seadrill Limited (NYSE:SDRL) posted better-than-expected earnings for the first quarter of 2026, with an EPS of -$0.11, much better than the predicted -$0.2758. The company also outperformed revenue forecasts by $358 million, compared to a predicted $326.75 million, representing a 9.56% surprise.
Seadrill Limited (NYSE:SDRL) also increased its full-year 2026 outlook, estimating operational revenues of $1.43 billion to $1.48 billion, minus reimbursable revenues. The company forecasts EBITDA to be between $370 million and $420 million, reflecting improved project management and operational efficiency.
The same day, Seadrill Limited (NYSE:SDRL) issued its Fleet Status Report, which detailed contract coverage related to its 14 active offshore drilling rigs and provided insight into activities until early 2031.
The report also highlighted recent contract awards, including West Capella's deployment to Malaysia for PTTEP, which has a total contractual worth of about $157 million for a 440-day period beginning March 2027, with pricing options available for a further 150 days.
Seadrill Limited (NYSE:SDRL) provides offshore drilling services. It owns and operates drill ships, semi-submersibles, and jack-ups. It works in three segments: harsh environment, floaters, and jack-up rigs.
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Seadrill Limited’s upward revision to its 2026 outlook, following a first-quarter earnings beat and new contract wins, signals more than just another cyclical rebound in the offshore drilling sector. It reflects a broader strategic shift in how oil majors and independents are balancing near-term cost discipline with long-term supply security. After years of underinvestment post-2014’s oil price crash and the pandemic’s disruptions, the industry is now cautiously expanding capacity—yet selectively, favoring operators with modern fleets and strong backlogs. Seadrill’s ability to secure new contracts in this environment underscores its positioning as a consolidator in a fragmented market, particularly in deepwater and harsh-environment drilling where aging rigs are being retired faster than new ones are built.
The company’s recovery also highlights the lingering fragility of the offshore drilling ecosystem. While spot rates for ultra-deepwater rigs have firmed, the sector remains hypersensitive to oil price volatility and geopolitical risks. Seadrill’s improved guidance suggests confidence in sustained demand, but it’s worth noting that much of this optimism hinges on delayed projects finally reaching final investment decisions. If global crude prices soften due to demand concerns or a supply glut, the very contracts underpinning these upgrades could be renegotiated—testing the durability of the current upcycle.
Looking ahead, two critical questions emerge. First, whether Seadrill’s fleet modernization—including its high-specification drillships—will translate into premium pricing power as competitors like Transocean and Valaris also upgrade their assets. Second, how debt-laden the company remains after its 2020 restructuring, despite fresh equity infusions. The offshore drilling industry’s history is littered with false dawns, and while the demand side looks healthier than it has in over a decade, the supply side’s discipline will be the ultimate arbiter of whether this rally is sustainable. For now, Seadrill’s optimism is a vote of confidence in the energy transition’s slower-than-expected pace—prolonging the need for oil even as renewable capacity grows. Yet the sector’s fate still hinges on factors far beyond its control: OPEC+ policy, U.S. shale production, and the pace of global decarbonization.
