In this segment, Motley Fool analysts Joel South and Taylor Muckerman discuss companies 10-6 of their Top 20 energy companies to watch. Companies 10-6 can be found here.
Market dynamics look good for offshore drillers, with crude prices above $100 per barrel and, according to Wood Mackenzie, deepwater spending is estimated to rise from $43 billion last year to $114 billion in 2022. A solid investment to play this growth is Seadrill (SDRL). This company leases out the youngest fleet in the space, offering safer vessels that command higher day rates and exceptional utilization rates.
In addition, Seadrill offers investors a substantial forward dividend yield of 7.6%. With more than $15 billion in contract backlogs, a world-class fleet of offshore vessels, and an industry-leading dividend, Seadrill looks like a clear winner.
Strong dividends to consider
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