DME Capital Sells Seadrill Shares
Key Points
DME Capital sold about 1.6 million shares
The firm no longer holds any shares.
The stake previously accounted for approximately 1.9% of fund AUM as Sept. 30.
- 10 stocks we like better than Seadrill ›
According to a U.S. Securities and Exchange Commission (SEC) filing dated Feb. 17, DME Capital Management, LP, fully exited its position in Seadrill. The fund sold all 1,588,828 shares it reported owning in the previous quarter.
- Sold 1,588,828 shares of Seadrill
- Post-trade stake is zero shares
- The stake previously accounted for approximately 1.9% of fund AUM as of the prior quarter
What else to know
- Top holdings after the filing:
- NYSE:GRBK: $593.2 million (20.8% of AUM)
- NYSE:FLR: $220.2 million (7.7% of AUM)
- NYSE:CNR: $185.9 million (6.5% of AUM)
- NASDAQ:BHF: $180.9 million (6.3% of AUM)
- NYSE:GPK: $126.7 million (4.4% of AUM)
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.4 billion |
| Net income (TTM) | -$77.0 million |
Company snapshot
- Provides offshore contract drilling services, operating a fleet of drillships, semi-submersible rigs, and jack-up rigs across harsh and benign environments.
- Serves oil super-majors, national oil companies, and independent exploration and production firms worldwide.
- Offers operation support and management services to third parties and related companies.
As of April 8, 2022, Seadrill had a fleet of 21 advanced offshore drilling units. The company focuses on delivering offshore drilling solutions for a diverse global client base, leveraging technical expertise and operational flexibility.
What this transaction means for investors
With the benefit of hindsight, DME Capital sold its Seadrill stake too soon. After the shares lost 11.1% in 2025, they’ve rebounded strongly this year.
In 2026, through March 12, Seadrill’s stock price gained 21.7%. In comparison, the S&P 500 index lost 2.3%.
Of course, some of the rebounding performance has been due to the Iran war and the upward swing in oil prices. That’s an event no one could’ve forecasted.
Seadrill’s drilling business depends on rates paid by the energy sector’s exploration and production companies. These fluctuate with commodity prices. Looking at the most recent results, Seadrill’s fourth-quarter contract revenue came in at $273 million, down 2.5% from from the previous quarter.
For investors, that dependence on commodity prices means you need to take a long-term view and have a willingness to stomach volatile revenue.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Green Brick Partners. The Motley Fool has a disclosure policy.
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