Seadrill (SDRL) Pareto Securities Energy Conference Presentation summary

Financial highlights

• Market capitalization stands at $2.0 billion, with cash and cash equivalents of $419 million as of June 30, 2025.

• Total backlog is $2.5 billion, extending into 2029 at favorable and rising dayrates.

• FY25 adjusted EBITDA guidance is $350 million, with leverage at 0.77x and total liquidity of $578 million.

• FY25 total operating revenues are projected at $1,320–1,380 million, with capex and LTM at $250–300 million.

• Net debt is $232 million, with the lowest net leverage among UDW peers.

Market positioning and operations

• Operates a marketed fleet of 14 rigs, including 2 managed drillships, focused on key regions like the U.S. Gulf, Brazil, North Sea, West Africa, and Southeast Asia.

• 87% of offshore deepwater demand is concentrated in the 'Golden Triangle' regions.

• Top-performing drillships are optimally positioned to benefit from a recovering market.

• Recent contracts include multi-year awards in Brazil and Angola, and short-term contracts in the U.S. Gulf.

• Backlog additions from recent awards total $1.3 billion, with average UDW drillship dayrates at $450k/day.

Industry trends and outlook

• Offshore investment by major oil companies is forecasted to increase year-over-year, with 94% of proven plus probable reserves having breakeven costs under $60/bbl.

• Offshore sanctioning activity in 2026 is expected to reach the highest level in seven years.

• Competitive global drillship supply has decreased, with only 85 units available and significant barriers to new entry.

• The four largest UDW drillers control 73% of competitive drillship supply.

• Limited supply and growing demand present a compelling upside opportunity for 2026 and beyond.