Kurt Hallead's questions to Seadrill Ltd (SDRL) leadership • Q3 2024
Question
Kurt Hallead asked for context on balancing the competitive pricing environment in 2025 with the goal of maximizing cash margins. He also questioned the potential for share buybacks in 2025 and whether the market lull has created M&A opportunities.
Answer
EVP and CCO Samir Ali clarified that the focus is on cash flow generation per rig, not headline day rates. President and CEO Simon Johnson added that economies of scale and dynamic cost management are key to delivering superior margins. On capital allocation, EVP and CFO Grant Creed explained that buybacks are evaluated through a financial policy framework that weighs accretive uses of capital. Simon Johnson noted that while no M&A is imminent, the current market could create opportunities from less resilient competitors, and the board is supportive of potential growth.