In this video, Motley Fool energy analyst Joel South tells us a bit about Seadrill's (NYSE: SDRL) third-quarter earnings. The company's EPS did miss the mark, and as a result, the company's share price took a slight hit. However, Joel addresses the rig movements and planned downtime, which caused the weaker-than-expected quarter and looks at current utilization rates suggesting that Seadrill is back on the right track.
In addition, Seadrill once again grew its backlog in the third quarter, with total contracts now reaching $21.3 billion. The backlog will help boost EBITDA margins, which should go a long way toward securing the company's industry-leading dividend yield moving forward.
Joel South and Taylor Muckerman have no positions in the stocks mentioned above. The Motley Fool owns shares of Seadrill and ExxonMobil. Motley Fool newsletter services recommend Seadrill and Total. 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.