In the video below, Motley Fool analyst Joel South discusses Seadrill's (NYSE: SDRL) geographical footprint, utilization rates, and capacity abilities.
Specifically, he talks about the geographic diversity of its ultra-deepwater rigs, and how the day rates for these "bread and butter" rigs are higher than competitors Transocean, Noble, and Diamond Offshore.
Additionally, he details how its younger fleet and newer technology position Seadrill for strong growth; much of the demand will be for deeper and deeper deepwater drilling, meaning higher day rates, which will in turn drive higher revenues and profits for investors.
Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool owns shares of Transocean and Seadrill. Motley Fool newsletter services recommend Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.