SCHEDULE: Elliott Management Amends Seadrill Stake, Details Sales

Elliott Investment Management L.P. filed Amendment No. 7 to its Schedule 13D, updating its beneficial ownership in Seadrill Ltd to 6.8% and detailing recent share transactions.

Summary

• Elliott Investment Management L.P. filed Amendment No. 7 to its Schedule 13D regarding Seadrill Ltd.
• The filing updates Elliott's beneficial ownership and recent transactions in Seadrill Ltd Common Shares.
• Elliott Investment Management L.P. beneficially owns 4,213,146 Common Shares of Seadrill Ltd.
• This represents 6.8% of Seadrill Ltd's Common Shares outstanding, based on 62,374,171 shares as of November 3, 2025.
• The aggregate cost of the Common Shares reported is approximately $87,793,816.
• Elliott Funds also hold notional principal amount derivative agreements (cash-settled swaps) with economic exposure comparable to 7.0% of Seadrill's Common Shares, representing 4,345,581 shares.
• The combined economic exposure in Seadrill Ltd for the Reporting Person is approximately 13.7% of Common Shares outstanding.
• Recent open market sales by the Reporting Person include:
• 12/15/2025: 120,000 shares sold at a weighted average price of $32.02 (price range $31.50 $32.27).
• 12/16/2025: 200,000 shares sold at a weighted average price of $30.51 (price range $29.67 $31.39).
• 12/17/2025: 89,400 shares sold at a weighted average price of $29.95 (price range $29.47 $30.57).
• 12/18/2025: 100,000 shares sold at a weighted average price of $30.27 (price range $29.74 $30.50).

Sentiment

Score: 6

Explanation: The filing is neutral in tone, primarily a factual disclosure of an investor's stake and recent trading activity. The continued significant economic exposure (13.7%) by a major investor like Elliott is generally positive, but recent share sales could be seen as a slight negative, balancing the sentiment.

Positives

• A prominent investment firm, Elliott Investment Management L.P., maintains a significant stake and economic exposure in Seadrill Ltd, indicating continued interest.
• The firm's combined economic exposure is approximately 13.7% of Common Shares outstanding, suggesting a substantial position.

Negatives

• Elliott Investment Management L.P. reported sales of 509,400 Common Shares between December 15 and December 18, 2025, which could be interpreted as a reduction in direct equity holdings.

Risks

• The Reporting Person may effect purchases through margin accounts, and positions may be pledged as collateral, introducing leverage risk for the Reporting Person.
• The Derivative Agreements provide economic exposure without voting or dispositive power, meaning the Reporting Person does not control the underlying shares referenced by the swaps.

Future Outlook

The filing does not provide specific forward-looking statements or guidance from Seadrill Ltd. It primarily details the current ownership and recent trading activities of Elliott Investment Management L.P.

Management Comments

• The filing does not contain notable quotes or paraphrased statements from company management of Seadrill Ltd. It includes a certification signature from Elliot Greenberg, Vice President of Elliott Investment Management L.P.

Industry Context

This filing reflects the ongoing portfolio management activities of a significant activist investor, Elliott Investment Management L.P., within the offshore drilling sector. While not directly commenting on industry trends, the firm's continued substantial economic exposure to Seadrill Ltd, despite recent share sales, suggests a sustained interest in the company's performance within its operating environment.

Stakeholder Impact

• Shareholders: The disclosure of a significant investor's stake and trading activity can influence market perception and potentially share price. Recent sales by Elliott could be interpreted differently by various investors.
• Company Management: Awareness of a major investor's position and activities, especially an activist one like Elliott, can influence strategic decisions and communication.

Next Steps

• The Reporting Person will undertake to provide to the staff of the SEC, upon request, full information regarding the Common Shares sold or purchased at each separate price.

Key Dates

Recommendation

Elliott Investment Management L.P. maintains a substantial economic interest in Seadrill Ltd, indicating continued conviction despite recent direct share sales. The reduction in direct beneficial ownership from 7.0% to 6.8% through sales, while maintaining a significant overall economic exposure of 13.7% via derivatives, suggests a rebalancing of their position rather than a full exit. Investors should hold to observe future actions by Elliott and Seadrill's operational performance, as this filing alone does not provide sufficient information for a strong buy or sell recommendation.

Keywords

Seadrill Ltd, Elliott Investment Management, Schedule 13D, Beneficial Ownership, Equity Stake, Share Transactions, Activist Investor, Common Shares, Drilling Industry