SDRL

Seadrill’s second quarter was marked by strong operational execution, as management pointed to high rig utilization rates and the successful transition of key assets onto higher-paying contracts. CEO Samir Ali highlighted the on-schedule reactivation of the West Tellus and robust performance from the U.S. Gulf fleet as important milestones. The company also benefited from a step-up in management contract revenues and favorable repricing of legacy contracts, which contributed to the notable improvement in operating margin. Management credited these factors—along with disciplined safety standards and continued investment in workforce training—for underpinning the quarter’s outperformance. Is now the time to buy SDRL? Find out in our full research report (it’s free). Revenue: $449 million vs analyst estimates of $394.2 million (19.1% year-on-year growth, 13.9% beat) Adjusted EPS: $0.47 vs analyst estimates of $0.28 (68.3% beat) Adjusted EBITDA: $144 million vs analyst estimates of $108.9 million (32.1% margin, 32.3% beat) Operating Margin: 16%, up from 1.6% in the same quarter last year Market Capitalization: $3.00 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Doug Becker (Capital One Securities) asked about the scale and timing of share repurchases, with CFO Grant Creed emphasizing decisions are based on cash position, alternative uses, and ongoing Board discussions, rather than a preset schedule. Edward Kim (Barclays) questioned what drove the repeated guidance raises, to which Creed responded that operational execution, longer-than-expected rig activity, and the timing of maintenance expenses were key factors. Fredrik Stene (Clarksons Securities) inquired about contract strategies for rigs rolling off in the near future, with VP Jacob Taylor stressing the focus on minimizing idle time and capturing upside if utilization tightens further. Gregory Lewis (BTIG) asked about opportunities for 7th-generation rigs in Asia and long-term capital expenditures, with management noting flexibility in fleet deployment and no significant special projects anticipated in the near term. Keith Beckmann (Pickering Energy Partners) probed for changes in customer contracting behavior, with CEO Samir Ali observing only marginal shifts toward longer-term bookings and reiterating a case-by-case approach to new contracts. As we look to the next few quarters, the StockStory team will watch (1) the pace and terms of new contract wins in the U.S. Gulf, Brazil, and Southeast Asia, (2) visibility into utilization and contract coverage for rigs with limited backlog, and (3) the ability to sustain high economic uptime and manage maintenance costs. The evolution of day rates and progress on regional tenders will also be important indicators for Seadrill’s execution against its strategic priorities. Seadrill currently trades at $47.96, up from $43.24 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Total Operating Revenues: $449 million in Q2 2026, up sequentially due to more operating days and an improved average day rate. Adjusted EBITDA: $144 million, a sequential increase of $47 million, with an EBITDA margin excluding reimbursables of 33.5%. Operating Expenses: $377 million in Q2, up $43 million from the prior quarter, primarily due to the West Capella and West Jupiter returning to operations for the full quarter. Economic Utilization: 96% for the quarter. Total Cash: $360 million at quarter-end, a $31 million increase from the prior quarter. Capital Expenditures: $57 million in Q2. Share Repurchases: $20 million of shares repurchased during the last week of June. Backlog Additions: Approximately $200 million added since the May call, including a 12-month contract with Talos for the Westfellas (adding ~$161 million) and a priced option for ~75 days on the West Capella. Full-Year 2026 Revenue Guidance: Raised to $1.5 billion to $1.55 billion, excluding $50 million of reimbursable revenues. Full-Year 2026 EBITDA Guidance: Raised to $420 million to $450 million, including a non-cash net expense of $30 million related to amortization and mobilization costs and revenues. Full-Year 2026 Capital Expenditure Guidance: Maintained at $200 million to $240 million. Warning! GuruFocus has detected 4 Warning Sign with SDRL. Is SDRL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Seadrill Ltd (NYSE:SDRL) delivered strong Q2 2026 results with EBITDA of $144 million, exceeding expectations and prompting a second guidance raise this year. The company achieved high operational performance with 96% economic utilization and completed the West Telus reacceptance on schedule and on budget. Seadrill Ltd (NYSE:SDRL) secured approximately $200 million in new backlog, including a 12-month contract with Talos for the West Vela at leading-edge day rates. The refinancing in June strengthened the balance sheet by extending debt maturities to 2034 and increasing the revolving credit facility to $300 million. Management resumed shareholder returns with $20 million in share repurchases and extended the buyback program through year-end, reflecting confidence in future cash flow. Seadrill Ltd (NYSE:SDRL) faces limited visibility for the Savannah, Louisiana rig for the remainder of 2026, which is reflected in conservative guidance. The company expects higher repair and maintenance expenses in the second half of 2026, which could pressure margins. The West Gemini is due to roll off contract later this year, and its follow-on work is not yet secured, creating potential idle time. The West Carina is currently stacked in Walvis Bay with no contract, and securing work is expected only in the first half of 2027, leading to a gap in revenue. The U.S. Gulf market is in transition with several drillships becoming available before year-end, potentially creating near-term oversupply and pricing pressure. Q: Could you expand on the commentary regarding the West Carina, which has been mobilized to West Africa, and what the expectations are for contract activity and timing?A: Jacob Taylor (VP, Commercial) explained that the rig was repositioned to West Africa due to its proximity to near-term work opportunities, providing flexibility to pursue prospects in both West Africa and Southeast Asia, where demand is currently highest. The company benefits from its existing regional presence and can maintain the rig ready for its next campaign. Most campaigns currently in the market are expected to commence in the first half of 2027, with contract awards anticipated within the next one to two quarters. Q: This is the second consecutive quarter with a full-year guidance raise. What has surprised you to the upside compared to your initial expectations at the beginning of the year?A: Jacob Taylor (VP, Commercial) attributed the guidance increases primarily to strong operational execution, particularly on the key projects for the West Jupiter, West Capella, and West Telus. Additionally, the West Carina worked longer than initially anticipated, and the Savannah, Louisiana (the "show me" rig) exceeded expectations for utilization in the first half of the year. On the expense side, costs were in line with expectations, though repair and maintenance expenses are skewed more heavily to the second half of the year. Q: Given the constructive outlook with drillship utilization potentially reaching the mid-90s next year and leading-edge day rates now firmly in the mid-$400s, is there any reason to believe day rates shouldn't continue to move higher next year?A: Jacob Taylor (VP, Commercial) stated that day rate progression is purely driven by utilization. As utilization is expected to improve and rigs continue to move from the Western Hemisphere to the Eastern Hemisphere, this should drive day rate momentum. However, he emphasized that Seadrill looks at the full contract value holisticallyincluding mobilization fees and terms and conditionsrather than focusing solely on the headline day rate, aiming to maximize the total cash generated from each contract. Q: You extended the share repurchase program through December and restarted buybacks with $20 million in Q2. How should we frame the scale and pace of buybacks once the free cash flow inflection occurs in the second half of the year?A: Grant Creed (EVP & CFO) explained that the decision to repurchase shares is based on assessing the company's cash position, forecast cash generation, and alternative uses of capital through a disciplined lens. With the company at an inflection point due to the repricing of legacy contracts and a healthy cash position supported by the June refinancing, the buyback became an accretive use of capital when the share price traded in the $30s. The pace of future buybacks remains "to be determined" and will be evaluated on an ongoing basis. Q: Regarding the rigs rolling off contract in the second half of next year, have you started progressing new contracts for those rigs, and how do you weigh short-term versus long-term work to balance visibility and upside capture?A: Jacob Taylor (VP, Commercial) noted that the company is heavily focused on capital discipline and cash management, with swift payback periods being a high priority. If successful in securing work for the West Carina, assets like the West Gemini and potentially the West Auriga can be positioned to capture upside. As utilization tightens above 95%, rates are expected to push into the higher $400s. Samir Ali (CEO) added that the team's focus is on minimizing gaps between contracts, as gaps represent wasted money and time. Q: Are you seeing any change in customer behavior as the market looks set to tighten into 2027, such as customers looking to lock in rates further out for longer-term contracts?A: Jacob Taylor (VP, Commercial) indicated that there hasn't been a wholesale change in customer behavior yet, though there are marginal signs. Examples include a client securing a rig in Southeast Asia for a mid-2028 start and some tenders for 2028/2029 commencements. With higher commodity prices providing customers with more free cash flow, there may be a wind at their backs to develop more fields, but a significant shift in behavior has not yet materialized. Q: Regarding the two stacked harsh-environment semis (Aquarius and Phoenix), what could the potential reactivation costs be, and what contract terms would make reactivation economically viable?A: Jacob Taylor (VP, Commercial) stated that the harsh-environment floater space is almost 100% utilized, and Seadrill would love to grow its fleet in that market, given its existing presence in Norway. Reactivation costs for the Phoenix or Aquarius would be meaningful, likely over $100 million. The company would require a contract that justifies the investment, evaluating the full economics of the contractincluding day rate, mobilization fees, and durationrather than mandating a specific contract length. Q: Can you provide more detail on the working capital build in Q2 and how it will impact free cash flow in the second half of the year?A: Grant Creed (EVP & CFO) explained that the accounts receivable build in Q2 was primarily due to the West Jupiter and West Capella commencing new contracts in late March. These should normalize in Q3 with no further outflows. For the West Telus, there will be a working capital build on accounts receivable in Q3, but this will be offset by a $40 million mobilization receipt from Petrobras. Once this is behind them, the company should be on a normalized working capital basis, with cash flow strengthening through the second half of the year. Q: How are you thinking about the opportunity set for seventh-generation rigs in Asia, given that the region has historically been a lower-priced market for high-quality drillships?A: Samir Ali (CEO) noted that while the West Capella and West Polaris are sixth-generation rigs, they are dual-activity with MPD systems, making them better than average sixth-gen rigs. The West Carina is positioned in Walvis Bay with access to both Africa and Asia. Jacob Taylor (VP, Commercial) added that in 2024, one of their sixth-gen units achieved a rate of $545,000 per day in a niche position. There is a scenario where seventh-generation rigs get scooped up early in the cycle, leaving sixth-generation rigs to capture upside, so the company views both parts of its fleet as opportunities. Q: Are there any special surveys or rig upgrades coming in 2027 that we should be thinking about For the complete transcript of the earnings call, please refer to the full earnings call transcript.

HAMILTON, Bermuda, August 10, 2026--(BUSINESS WIRE)--Seadrill Limited ("Seadrill" or the "Company") (NYSE: SDRL) today announced its second quarter 2026 results. Highlights Secured contract awards and extensions in the U.S. Gulf and Malaysia, adding approximately $200 million to Contract Backlog(1) subsequent to the May fleet status report. Extended the Company's share repurchase program through December 31, 2026, and repurchased approximately $20 million of shares in the second quarter. Refinanced prior senior notes due in 2030, extending maturity into 2034 and increased the revolving credit facility to $300 million from $225 million, extending maturity to 2031. Reported net income of $29 million and Adjusted EBITDA(2) of $144 million. Increased full year 2026 Total operating revenues and Adjusted EBITDA(3) guidance ranges as follows: Financial Highlights "Seadrill’s second quarter performance reflects strong operational, commercial and financial execution, with momentum building across the business. We achieved 96% Economic utilization(4), meaningfully enhanced our contract coverage in the U.S. Gulf and increased our full-year revenue and EBITDA guidance," said Samir Ali, President and Chief Executive Officer. "Demand for our high specification fleet continues to strengthen and contract coverage is improving as we enter a period where our strategic decisions are enabling us to capture the upside in the market." Financial and Operational Results Second quarter 2026 Total operating revenues increased to $449 million, compared to $358 million in the prior quarter, primarily driven by more operating days for the West Jupiter and West Capella and an improved average dayrate across the fleet, partially offset by fewer operating days for the West Tellus. Total operating expenses increased by $43 million to $377 million, compared to $334 million in the prior quarter, primarily reflecting higher operating activity for the West Jupiter and West Capella. Net income for the second quarter was $29 million, while Adjusted EBITDA increased to $144 million, compared to $97 million in the prior quarter. Balance Sheet and Cash Flow At quarter-end, Seadrill had gross principal debt of $750 million and $360 million in cash, cash equivalents and restricted cash, resulting in a net debt position of $390 million. Second quarter 2026 cash inflows from the refinancing and lump-sum mobilization revenue were partially offset by an increase in accounts receivable, primarily related to the commencement of the West Jupiter and the West Capella contracts, and the timing of collections across the remainder of the fleet. Cash outflows included contract preparation costs for the West Tellus, ahead of the lump-sum mobilization revenue expected in the third quarter, as well as a $20 million accelerated interest expense payment relating to the redemption of our prior senior notes, a $16 million final payment for a legacy legal judgment relating to the Sonadrill joint venture, and share repurchases. Capital additions and long-term maintenance totaled $57 million. Commercial Activity and Contract Backlog West Vela was awarded a one-year contract in the U.S. Gulf, commencing in June 2027 and adding approximately $161 million to Contract Backlog, excluding additional services. West Capella secured a contract extension in Malaysia. The additional term is for an estimated 75 days and adds approximately $26 million to Contract Backlog, excluding additional services, committing the rig into August 2027. Sevan Louisiana added approximately 45 days in direct continuation of its prior program, committing the rig in the U.S. Gulf into August 2026. As of August 10, 2026, Seadrill’s Contract Backlog was approximately $2.9 billion. The Company has provided an updated fleet status report on the Investor Relations section of its website, www.seadrill.com. Conference Call Information The Company will host a conference call to discuss its results on Monday, August 10, 2026 at 08:00 CT / 15:00 CET. Interested participants may join the call by dialing +1 (833) 461-5787 (Conference ID: 296 907 442) at least 15 minutes prior to the scheduled start time. The Company will webcast the call live on the Investor Relations section of its website, where a replay will be available afterwards. (1) Contract Backlog stated as of August 10, 2026, and includes all firm contracts at the contractual operating dayrate multiplied by the number of days remaining in the firm contract period. It includes management contract revenues and leasing revenues from bareboat charter arrangements and excludes revenues for mobilization, demobilization, contract preparation, and other incentive provisions and backlog relating to non-consolidated entities.(2) These are non-GAAP measures. For a definition and a reconciliation to the most comparable GAAP measure, see Appendices.(3) Due to the forward-looking nature of Adjusted EBITDA, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure, net income. Accordingly, the Company is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure without unreasonable effort. The unavailable information could have a significant effect on the Company's full year 2026 GAAP financial results, as well as the actual amount of Adjusted EBITDA we eventually report for the period.(4) Economic utilization is defined as dayrate revenue earned during the period, excluding bonuses, divided by the contractual operating dayrate, multiplied by the number of days on contract in the period. If a drilling unit earns its full operating dayrate throughout a reporting period, its economic utilization would be 100%. However, there are many situations that give rise to a dayrate being earned that is less than the contractual operating rate, such as planned downtime for maintenance. In such situations, economic utilization reduces below 100%. About Seadrill Seadrill is setting the standard in deepwater oil and gas drilling. With its modern fleet, experienced crews, and advanced technologies, Seadrill safely, efficiently, and responsibly unlocks oil and gas resources for national, integrated, and independent oil companies. For further information, visit www.seadrill.com. Forward-Looking Statements This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this news release, including, without limitation, those regarding the Company’s outlook and guidance, plans, strategies, business prospects, contract awards, financial performance, operations, litigation, rig activity and changes and trends in its business and the markets in which it operates, are forward-looking statements. These forward-looking statements can often, but not necessarily, be identified by the use of forward-looking terminology, including the terms "assumes", "projects", "forecasts", "estimates", "expects", "anticipates", "believes", "plans", "intends", "may", "might", "will", "would", "can", "could", "should" or, in each case, their negative, or other variations or comparable terminology. These statements are based on management’s current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: those described under Part I, Item 1A, "Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the United States ("U.S.") Securities and Exchange Commission (the "SEC") on February 26, 2026, offshore drilling market conditions including supply and demand, dayrates, customer drilling programs and effects of new or reactivated rigs on the market, contract awards and rig mobilizations, contract backlog, dry-docking and other costs of maintenance, special periodic surveys, upgrades and regulatory work for the drilling units in the Company’s fleet, the performance of the drilling units in the Company’s fleet, delay in payment or disputes with customers, the Company’s ability to successfully employ its drilling units, procure or have access to financing, ability to comply with loan covenants, fluctuations in the international price of oil, international financial market conditions, U.S. trade policy and tariffs and worldwide reactions thereto, inflation, changes in governmental regulations that affect the Company or the operations of the Company’s fleet, increased competition in the offshore drilling industry, the review of competition authorities, the impact of global economic conditions and global health threats, pandemics and epidemics, our ability to maintain relationships with suppliers, customers, employees and other third parties, our ability to maintain adequate financing to support our business plans, our ability to successfully complete and realize the intended benefits of any mergers, acquisitions and divestitures, and the impact of other strategic transactions, our liquidity and the adequacy of cash flows to satisfy our obligations, future activity under and in respect of the Company’s share repurchase program, our ability to satisfy (or timely cure any noncompliance with) the continued listing requirements of the New York Stock Exchange, the cancellation of drilling contracts currently included in reported contract backlog, losses on impairment of long-lived fixed assets, shipyard, construction and other delays, the results of meetings of our shareholders, political and other uncertainties, including those related to the conflicts in Ukraine and the Middle East (including the current conflict in Iran), and any related sanctions, the effect and results of litigation, regulatory matters, settlements, audits, assessments and contingencies, including any litigation related to acquisitions or dispositions, the concentration of our revenues in certain geographical jurisdictions, limitations on insurance coverage, our ability to attract and retain skilled personnel on commercially reasonable terms, the level of expected capital expenditures, our expected financing of such capital expenditures and the timing and cost of completion of capital projects, fluctuations in interest rates or exchange rates and currency devaluations relating to foreign or U.S. monetary policy, tax matters, changes in tax laws, treaties and regulations, tax assessments and liabilities for tax issues, legal and regulatory matters in the jurisdictions in which we operate, customs and environmental matters, the potential impacts on our business resulting from decarbonization and emissions legislation and regulations, the impact on our business from climate change generally, the occurrence of cybersecurity incidents, attacks or other breaches to our information technology systems, including our rig operating systems, and other important factors described from time to time in the reports filed or furnished by us with the SEC. The foregoing risks and uncertainties are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond our control. In many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or to any person(s) acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by securities laws. Investors should note that we announce material financial information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, we may use the Investors section of our website (www.seadrill.com) to communicate with investors, and we intend to post presentations and fleet status reports there, among other things. It is possible that the financial and other information posted there could be deemed to be material information. The information on our website is not part of, and is not incorporated into, this news release. Furthermore, references to our website URLs are intended to be inactive textual references only. SEADRILL LIMITEDCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) SEADRILL LIMITEDCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) SEADRILL LIMITEDCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Appendix I - Reconciliation of Net income/(loss) to Adjusted EBITDA (Unaudited) Adjusted EBITDA represents Net income/(loss) before depreciation and amortization, income tax expense, total financial and non-operating items, and similar non-cash charges. Additionally, in any given period, the Company may have significant, unusual or non-recurring items which may be excluded from Adjusted EBITDA for that period. When applicable, these items are fully disclosed and incorporated into the reconciliation provided below. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of Total operating revenues. Adjusted EBITDA excluding Reimbursables, represents Adjusted EBITDA, excluding Reimbursable revenues and Reimbursable expenses. Adjusted EBITDA Margin excluding Reimbursables represents Adjusted EBITDA excluding Reimbursables as a percentage of Total operating revenues excluding Reimbursable revenues. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Reimbursables and Adjusted EBITDA Margin excluding Reimbursables are non-GAAP financial measures. The Company believes that the aforementioned non-GAAP financial measures assist investors by excluding the potentially disparate effects between periods of depreciation and amortization, income tax expense, total financial items and non-operating items, merger and integration related expenses, and other adjustments specified, which are affected by various and possibly changing financing methods, capital structure and historical cost basis and which may significantly affect Net income/(loss) between periods. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Reimbursables and Adjusted EBITDA Margin excluding Reimbursables should not be considered as alternatives to Net income/(loss) or any other indicator of Seadrill Limited’s performance calculated in accordance with GAAP. Because the definitions of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Reimbursables and Adjusted EBITDA Margin excluding Reimbursables (or similar measures) may vary among companies and industries, they may not be comparable to other similarly titled measures used by other companies. The tables below reconcile Net income/(loss), the most directly comparable GAAP measure, to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Reimbursables and Adjusted EBITDA Margin excluding Reimbursables. Appendix II - Contract Revenues Supporting Information (Unaudited)(1) Appendix III - Reconciliation of Net cash used in operating activities to Free Cash Flow (Unaudited) The Company also presents Free Cash Flow as a non-GAAP liquidity measure. Free Cash Flow is calculated as Net cash used in operating activities less Additions to drilling units and equipment. The Company believes Free Cash Flow is useful to investors, as it allows greater transparency of the utilization or generation of cash by the business. Because the definition of Free Cash Flow may vary among companies and industries, it may not be comparable to other similarly titled measures used by other companies. The table below reconciles Net cash used in operating activities, the most directly comparable GAAP measure, to Free Cash Flow for the three months ended June 30, 2026 and March 31, 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20260809984669/en/ Contacts Kevin SmithVP - Corporate Finance & [email protected]

Interested in Seadrill Limited? Here are five stocks we like better. Seadrill raised its 2026 outlook for the second time, now forecasting operating revenue of $1.5 billion-$1.55 billion and adjusted EBITDA of $420 million-$450 million, while maintaining capital expenditure guidance of $200 million-$240 million. Second-quarter results benefited from higher operating activity and day rates, with revenue of $449 million, adjusted EBITDA of $144 million and 96% economic utilization. The West Jupiter and West Tellus contracts are generating roughly $400,000 more revenue per day combined than their previous agreements. Seadrill added approximately $200 million in backlog since May and expects a tighter deepwater drilling market in 2027. The company also strengthened liquidity through refinancing, ended the quarter with $360 million in cash and resumed share repurchases with a $20 million buyback. 3 High-Value Companies With Triple-Digit Upside Potential Seadrill (NYSE:SDRL) raised its full-year 2026 revenue and EBITDA outlook after reporting second-quarter results that President and Chief Executive Officer Samir Ali said exceeded expectations, supported by higher operating activity, improved day rates and execution on major rig projects. The offshore drilling contractor reported second-quarter operating revenue of $449 million and adjusted EBITDA of $144 million. Economic utilization was 96% during the quarter, while EBITDA margin excluding reimbursable revenue was 33.5%. → MarketBeat Week in Review – 08/03 - 08/07 3 Stocks to Gain From the Rising Demand in Offshore Drilling Ali said the company’s performance supported its second increase to full-year guidance this year. Seadrill now expects 2026 operating revenue of $1.5 billion to $1.55 billion, excluding $50 million of reimbursable revenue, and EBITDA of $420 million to $450 million. The company maintained capital expenditure guidance of $200 million to $240 million. Executive Vice President and Chief Financial Officer Grant Creed said the sequential revenue improvement reflected more operating days and a rising average day rate. The West Capella in Malaysia and West Jupiter in Brazil contributed full quarters of revenue after beginning new programs late in the first quarter, while increased activity from the Sevan Louisiana in the U.S. Gulf also supported results. → Quantum Earnings Week: Winners and Losers Are Finally Emerging The West Tellus had fewer operating days during the quarter as it underwent planned reacceptance testing before starting its Brazil contract late in the quarter. Ali said the reacceptance was completed on schedule and on budget, with the rig operating since mid-June. Creed said the West Jupiter and West Tellus have now begun contracts at materially higher day rates than their prior agreements. Together, the two rigs represent a revenue increase of roughly $400,000 per day compared with their legacy contracts. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Operating expenses were $377 million in the second quarter, up $43 million from the prior quarter, primarily because the West Capella and West Jupiter returned to operations for the full quarter. Seadrill also reported higher management-contract revenue from its Sonadrill joint venture after an increase in daily management fees was applied retroactively to Jan. 1. Since its May earnings call, Seadrill added about $200 million of backlog through new contracts and extensions involving three rigs in the U.S. Gulf and Malaysia. The West Vela secured a 12-month direct-continuation contract with Talos beginning in June 2027. The award adds about $161 million of backlog, excluding additional services. Harbour and LLOG extended the West Neptune and selected the West Vela for a 270-day campaign beginning later in 2026. The Sevan Louisiana was contracted by Harbour for a short campaign at the end of July after completing work for Walter Oil & Gas, Guardian and LLOG. In Malaysia, a customer exercised a priced option of about 75 days for the West Capella, extending operations into the second half of 2027. Ali said the West Vela contract brought Seadrill’s year-to-date backlog additions in the U.S. Gulf to nearly $500 million. The West Neptune is contracted into late 2027, while the Sevan Louisiana has less visibility for the rest of 2026 despite working steadily during the first half of the year. During the question-and-answer session, Creed said Seadrill was not assuming additional second-half work for the Sevan Louisiana in its outlook. However, Vice President Commercial Jacob Taylor said the company is in positive discussions regarding campaigns that could begin late this year, as well as longer-term prospects that could mature in the second and third quarters of 2027. Seadrill ended the quarter with $360 million in cash, up $31 million from the prior quarter. The company completed a refinancing in June, issuing $700 million of 6.75% senior notes due 2034 and using a portion of the proceeds to redeem $575 million of 8.375% senior secured second-lien notes due 2030. It also expanded its revolving credit facility to $300 million from $225 million and extended the facility’s maturity to 2031. Creed said cash generation is expected to improve in the second half as major project-related spending declines and the company receives contributions from the West Capella, West Jupiter and West Tellus contracts. Seadrill expects to collect a $40 million mobilization payment from Petrobras for the West Tellus in the third quarter. The company repurchased $20 million of shares during the final week of June after its board extended the remaining $208 million authorization under its buyback program through the end of 2026. Creed said the timing and scale of any further repurchases will be determined based on the company’s cash position, expected cash generation and alternative capital-allocation opportunities. Ali said Seadrill expects the tender pipeline to result in a materially tighter drillship market in 2027, with utilization potentially reaching the mid-90% range if tenders convert into awards. He cited rising offshore investment, exploration activity and limited availability of high-specification floaters as support for the company’s outlook. In Brazil, Seadrill said 25 drillships are currently contracted, with only three expected to become available before the end of 2027 if options on certain rigs are exercised. The West Carina completed its Brazil contract at the end of June and has been mobilized to Walvis Bay, Namibia, where Seadrill believes it can pursue opportunities in both West Africa and Southeast Asia. Taylor said the company expects potential awards for the rig within the next one or two quarters, with most identified campaigns beginning in the first half of 2027. In West Africa, the Sonadrill joint venture’s three rigs delivered technical uptime above 99% in the second quarter, according to Ali. The West Gemini is due to roll off contract later this year and is being marketed in Angola and elsewhere in West Africa. Ali also said Seadrill sees growing opportunities in Southeast Asia, where the West Capella is positioned to benefit from limited drillship availability. The company said it continues to prioritize direct-continuation work, minimizing idle periods between contracts and assessing the total economics of contracts rather than day rates alone. Seadrill Limited, trading on the New York Stock Exchange under the symbol SDRL, is a leading provider of offshore drilling services to the global oil and gas industry. The company specializes in the design, construction, deployment and operation of mobile offshore drilling units, serving major exploration and production companies with turnkey drilling solutions. Seadrill’s fleet comprises ultra-deepwater drillships, semi-submersible rigs and high-specification jack-up units capable of operating in some of the world’s most challenging offshore environments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Seadrill Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Seadrill (SDRL) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to a loss of $0.68 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +62.07%. A quarter ago, it was expected that this offshore drilling services provider would post a loss of $0.1 per share when it actually produced a loss of $0.11, delivering a surprise of -10%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Seadrill, which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $449 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 16.32%. This compares to year-ago revenues of $377 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Seadrill shares have added about 25% since the beginning of the year versus the S&P 500's gain of 13.3%. While Seadrill has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Seadrill was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.14 on $370.5 million in revenues for the coming quarter and $0.37 on $1.48 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Borr Drilling (BORR), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This oilfield services company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -178.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Borr Drilling's revenues are expected to be $249 million, down 7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Seadrill Limited (SDRL) : Free Stock Analysis Report Borr Drilling Limited (BORR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The oil and energy sector is nearing the end of the second-quarter 2026 earnings season after navigating a volatile operating environment. During the quarter, geopolitical developments — particularly the conflict involving Iran — disrupted global crude supplies and pushed oil prices higher, creating a more favorable pricing environment for many upstream producers and oilfield service companies. At the same time, steady demand for liquefied natural gas (“LNG”) exports and electricity generation continued to support the overall sector’s fundamentals. The stronger commodity price environment has provided a significant tailwind for the sector's financial performance. However, results have varied across companies depending on factors such as production growth, operating efficiency, cost management and regional asset exposure. As the earnings season nears its conclusion, investors are focusing on companies that have been able to translate favorable market conditions into stronger-than-expected quarterly results. In the second quarter of 2026, West Texas Intermediate (“WTI”) crude oil averaged $95.75 per barrel, up significantly from $64.63 in the corresponding period of 2025, according to Energy Information Administration (“EIA”) data. Tighter global oil supplies primarily drove the year-over-year increase amid heightened geopolitical tensions in the Middle East. As crude prices are highly responsive to geopolitical developments, supply disruptions and broader macroeconomic conditions, the conflict involving Iran and disruptions to flows through the Strait supported the sharp rise in prices. Brent crude registered an even stronger increase than WTI, reflecting its greater sensitivity to shipping disruptions in the Middle East because it is more closely linked to seaborne crude trade. For upstream producers, the sharp increase in WTI prices represents a meaningful improvement in realized pricing and cash-flow potential, particularly for companies with strong production volumes and relatively low operating costs. However, the benefit is less straightforward for offshore drillers and other service providers, where earnings are influenced more heavily by contract rates, utilization and backlog. Natural gas prices, however, moved in the opposite direction. Henry Hub averaged $2.95 per million British thermal units during the quarter, compared with $3.19 in the year-ago period, according to EIA data. The year-over-year decline was largely attributable to strong domestic production, ample storage inventories and milder spring weather following the spike in demand during the winter months. The divergence between oil and natural gas prices is important for investors because companies with different commodity exposures can experience significantly different earnings trends even when they operate within the same broader energy sector. The oil and energy sector is nearing the end of the second-quarter 2026 earnings season with momentum remaining strong, supported by elevated oil prices, disciplined capital spending and robust upstream profitability. The latest Zacks Earnings Trends report shows that 70.8% of the sector's companies, representing 82.4% of its market capitalization, have already reported second-quarter results, and the performance so far has been exceptionally strong. Companies that have reported so far have delivered 150.4% year-over-year earnings growth on 45.3% higher revenues, with 76.5% beating EPS estimates and an equal 76.5% surpassing revenue expectations, highlighting the benefits of the stronger commodity price environment. Looking at the broader blended outlook, which combines reported results with estimates for companies yet to announce, the Energy sector's second-quarter earnings are projected to increase 137.8% year over year, following just 3.6% growth in the prior quarter. Meanwhile, revenues are expected to rise 41.8%, reflecting significantly improved pricing dynamics and resilient demand across the energy value chain. Among all 16 Zacks sectors, Energy is projected to post the strongest earnings growth in the second quarter. Against this backdrop, let's take a closer look at four prominent oil and energy companies scheduled to report their second-quarter 2026 results on Aug. 10 and assess how they are positioned amid the industry's evolving operating environment. Our proprietary model indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Let's take a closer look at three prominent companies and assess how they are positioned ahead of their second-quarter earnings releases. California Resources CRC is slated to report second-quarter 2026 results before the market opens. In the last reported quarter, the company’s adjusted earnings per share of 88 cents beat the Zacks Consensus Estimate by 6%. CRC’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 8.57%. This is depicted in the chart below: California Resources Corporation price-eps-surprise | California Resources Corporation Quote California Resources is an independent energy company engaged in the exploration, development and production of crude oil and natural gas, primarily in California. Our proven model does not conclusively predict an earnings beat for California Resources this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell) at present. The Zacks Consensus Estimate for CRC’s second-quarter earnings and revenues is pegged at $1.31 per share and $979.33 million, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Seadrill Limited SDRL is scheduled to report its second-quarter 2026 results before the market opens.In the last reported quarter, the company’s adjusted loss per share of 11 cents was slightly wider than the Zacks Consensus Estimate of 10 cents. Seadrill’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat in one, delivering an average negative surprise of 75.99%. This is depicted in the chart below: Seadrill Limited price-eps-surprise | Seadrill Limited Quote Seadrill is an offshore drilling contractor that provides drilling services to the oil and gas industry through its fleet of high-specification offshore drilling rigs. Our proven model does not conclusively predict an earnings beat for Seadrill this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for SDRL’s second-quarter earnings and revenues is pegged at 29 cents per share and $386 million, respectively. Infinity Natural Resources Inc. (INR) is set to report its second-quarter 2026 results following the market close.In the last reported quarter, the company’s adjusted earnings per share of $1.76 beat the Zacks Consensus Estimate of 85 cents. INR’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 105.02%. This is depicted in the chart below: Infinity Natural Resources Inc. price-eps-surprise | Infinity Natural Resources Inc. Quote Infinity Natural is an independent oil and natural gas exploration and production company focused on developing and producing oil, natural gas and natural gas liquids. Our proven model does not conclusively predict an earnings beat for Infinity Natural this time around. This is because it has an Earnings ESP of -2.22% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for INR’s second-quarter earnings and revenues is pegged at 86 cents per share and $165.37 million, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Seadrill Limited (SDRL) : Free Stock Analysis Report California Resources Corporation (CRC) : Free Stock Analysis Report Infinity Natural Resources Inc. (INR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HAMILTON, Bermuda, June 03, 2026--(BUSINESS WIRE)--Seadrill Limited (NYSE: SDRL) ("Seadrill" or the "Company") today announced the 2026 Annual General Meeting of the Shareholders of the Company was held on June 3, 2026, at the Hamilton Princess Hotel & Beach Club, Bermuda. The audited consolidated financial statements for the Company for the year ended December 31, 2025 were laid before the Meeting. In addition, the following resolutions were passed by shareholders: To determine that the number of Directors comprising the Board of Directors of the Company (the "Board") be set at up to nine (9) Directors until such number is determined or changed in accordance with the bye-laws of the Company (the "Bye-laws") and to authorize the Board to fill any vacancy on the Board left unfilled at any general meeting of shareholders. To re-elect, by way of separate resolutions, each of Julie J. Robertson, Jean Cahuzac, Jan Kjærvik, Mark McCollum, Harry Quarls, Andrew Schultz, Paul Smith, Jonathan Swinney and Ana Zambelli as Directors of the Company to serve until the Company’s next annual general meeting of shareholders or until their respective offices are otherwise vacated in accordance with the Bye-laws. To approve the appointment of PricewaterhouseCoopers LLP, United States ("PwC US"), to serve as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2026 and until the close of the Company’s next annual general meeting of shareholders thereafter and the authorization of the Board (acting through the Audit and Risk Committee of the Board) to determine the remuneration of PwC US. To approve and ratify the remuneration of the Directors. To conduct an advisory vote to approve the compensation of the Company’s named executive officers for 2025. To approve Amendment No. 1 to the Amended and Restated Seadrill Limited 2022 Management Incentive Plan. About Seadrill Seadrill is setting the standard in deepwater oil and gas drilling. With its modern fleet, experienced crews, and advanced technologies, Seadrill safely, efficiently, and responsibly unlocks oil and gas resources for national, integrated, and independent oil companies. For additional information, visit www.seadrill.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260603200751/en/ Contacts Kevin SmithVice President – Corporate Finance and Investor [email protected]