We just covered the Top 10 Stock Picks of Billionaire Paul Singer.
Seadrill Ltd (NYSE:SDRL) ranks #10 (see Top 5 Stock Picks of Billionaire Paul Singer)
Elliott’s Stake: $214,718,368 Offshore drilling contractor Seadrill Ltd (NYSE:SDRL) is up 32% so far this year amid improving sentiment toward offshore energy as oil prices firm and contract activity picks up—but can the stock move higher? The offshore drilling industry is entering an early upturn cycle supported by an increase in deepwater project approvals after years of underinvestment and a tightening supply of modern rigs, which is starting to push dayrates higher. Offshore projects are long-cycle by nature and can last several years.
This makes demand more stable once contracts are awarded. Regions such as Brazil, Guyana and West Africa continue to drive deepwater activity, where Seadrill Ltd (NYSE:SDRL) is well positioned. One of the company’s main strengths is its fleet of modern, high-spec drillships, which are in greater demand as operators focus on complex wells.