Investment Manager Doubles Down on Energy Stock, According to Recent SEC Filing

Packer & Co Ltd disclosed a significant purchase of 366,000 shares of Seadrill (SDRL +1.65%), valued at $14.94 million based on the quarterly average price, according to its May 13, 2026, SEC filing.

Seadrill delivers offshore drilling services worldwide, serving major oil producers with a fleet of advanced rigs and global reach.

What happened

According to a May 13, 2026, SEC filing, Packer & Co Ltd increased its stake in Seadrill, acquiring 366,000 additional shares. The estimated value of this purchase is $14.94 million, calculated using the average closing price during the first quarter of 2026. The total value of the position at quarter-end rose by $19.35 million, reflecting both new share purchases and market price movements.

What else to know

Packer & Co Ltd’s buy lifted Seadrill to 10.43% of its 13F-reportable AUM after the quarter, which places it fourth among the fund’s top five holdings.

Top five holdings after the filing:

• NYSE:PBR.A: $74.04 million (27.7% of AUM)
• NYSE:CNC: $46.33 million (17.3% of AUM)
• NYSE:NXE: $28.13 million (10.5% of AUM)
• NYSE:SDRL: $27.90 million (10.4% of AUM)
• NYSE:NE: $25.27 million (9.5% of AUM)

As of May 12, 2026, Seadrill shares were priced at $49.96, up 103.8% over the past year, outperforming the S&P 500 by 77.11 percentage points.

Company overview

Company snapshot

• Provides offshore contract drilling services, operating a fleet of drillships, semi-submersible rigs, and jack-up rigs for oil and gas exploration and production.
• Generates revenue through contracts with oil super-majors, state-owned national oil companies, and independent oil and gas companies.
• Targets global oil and gas companies seeking deepwater and harsh-environment drilling capabilities.

Seadrill is a leading offshore drilling contractor with a global fleet focused on both shallow and ultra-deepwater operations. The company leverages advanced rig technology and operational expertise to address the demanding needs of major energy producers. Its diversified customer base and presence in multiple offshore markets position it competitively within the oil and gas drilling industry.

What this transaction means for investors

Packer & Co., an Australian investment manager, recently disclosed the purchase of 366,000 shares of Seadrill stock, valued at approximately $14.9 million during the first quarter (the three months ending on March 31, 2026). Here are some key takeaways for investors.

First, it’s important to note that Seadrill, an energy stock, has performed very well of late. Shares have advanced by 46% year-to-date, easily besting the S&P 500, which has gained about 9% so far this year.

Behind this impressive performance, the company has reported solid quarterly results. The company’s first-quarter results exceeded analyst expectations for both revenue and earnings per share (EPS). Meanwhile, management provided upbeat guidance, citing strong backlog growth driven by high demand for the company’s deepwater rigs.

Yet, despite the solid results and positive guidance, some investors may point to ongoing concerns. The company remains free cash flow negative. In addition, net debt has been creeping higher, currently around $302 million, up from zero a year ago.

In summary, Seadrill stock has been on a roll thanks to higher energy demand and solid performance. However, underlying fundamental challenges remain, including a lack of free cash flow and rising debt levels.