Seadrill (SDRL): Billionaire Paul Singer’s Favorite Energy Stock

We just covered the Top 10 Stock Picks of Billionaire Paul Singer. Seadrill Ltd (NYSE:SDRL) ranks #10 (see Top 5 Stock Picks of Billionaire Paul Singer).

Elliott’s Stake: $214,718,368

Offshore drilling contractor Seadrill Ltd (NYSE:SDRL) is up 32% so far this year amid improving sentiment toward offshore energy as oil prices firm and contract activity picks up—but can the stock move higher?

The offshore drilling industry is entering an early upturn cycle supported by an increase in deepwater project approvals after years of underinvestment and a tightening supply of modern rigs, which is starting to push dayrates higher. Offshore projects are long-cycle by nature and can last several years. This makes demand more stable once contracts are awarded.

Regions such as Brazil, Guyana and West Africa continue to drive deepwater activity, where Seadrill Ltd (NYSE:SDRL) is well positioned. One of the company’s main strengths is its fleet of modern, high-spec drillships, which are in greater demand as operators focus on complex wells. Seadrill Ltd (NYSE:SDRL) also has a backlog of roughly $2.5 billion, providing multi-year revenue visibility and potential upside as older contracts roll off and are repriced at higher rates.

Patient Opportunity Equity Strategy stated the following regarding Seadrill Limited (NYSE:SDRL) in its Q1 2026 investor letter:

“Noble Corporation plc (NE) and Seadrill Limited (NYSE:SDRL) were top contributors during the first quarter, gaining 75.8% and 31.5%, respectively. Both stocks benefited …… (Click Here to Read the Letter in Detail).

While we acknowledge the risk and potential of SDRL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SDRL and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

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