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.
Seadrill is one of the more exciting plays in the space and will have to continue its rapid growth for investors to be rewarded, And despite Joel's confidence that this past quarter was an aberration, it's up to you to do a deep dive to better understand what's at risk. To learn more about the strengths and weaknesses of this company, as well as what to expect from Seadrill going forward, be sure to check out this brand-new premium report put together by one of our top Stock Advisor analysts. Click here to get started.