In the following video, Motley Fool analyst Joel South discusses how Seadrill (NYSE: SDRL) is positioned to reward investors with strong growth.

Earnings per share for the third quarter were a disappointment, and the market punished shareholders.  Earnings were below expectations as well, but partially because of both planned downtime and the relocation of a number of rigs to more profitable geographies. 

These activities are already showing positive returns, as day rates and utilization rates were at higher levels through November. Factor in a growing backlog and a dividend now near 9%, and Joel says you shouldn't fret over last quarter. Seadrill's young fleet, better technology, and the drive for deeper oil give Seadrill strong competitive advantages. 

He also discusses the new master limited partnership, Seadrill Partners (NYSE: SDLP), and how investors in both Seadrill and Seadrill Partners will benefit from the newly formed MLP, including why this new company will drive even faster growth in the next three to five years. 

Joel South and Taylor Muckerman have no positions in the stocks mentioned above. The Motley Fool owns shares of Kinder Morgan, Transocean, Seadrill, and ExxonMobil. Motley Fool newsletter services recommend Kinder Morgan and Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.