Offshore rigs have been an extremely hot commodity over the past several quarters, but the users of these rigs are starting to complain that the rent is too damn high. With Big Oil players cutting back spending programs, rig owners are starting to see dayrates fall. With the most ambitious growth plans and a highly levered balance sheet, Seadrill (SDRL) looks like it may be affected more than its peers. Surprisingly, though, the company may be in better shape than many might think.
Even though the prices around Seadrill are starting to fall, it has still been able to secure top-dollar contracts for rigs that will complete construction in 2014, and the breakeven costs for Seadrill's fleet is well below the target range of the current market dayrates. Find out more about why Seadrill is in a better position than competitors such as Transocean (RIG 2.16%), Diamond Offshore (DO), and Noble (NEBLQ) by tuning into the video below.
