90 YEARS STRONG RIGS - PEOPLE - PRIORITIES Investor Presentation May, 2013
Forward-Looking Statements This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the proposed change in corporate…
Rowans Strategic Transitions and Achievements Sold manufacturing business for 1.1 billion in cash Sold land business for 510 million in cash Completed jack-up newbuild program by investing 3 billon and delivered 11 new high-spec…
Rowan Has The Right Mission Rigs People Priorities Values Goals Action Plans Industry leading position 90 year history of Goal of highest in high-spec jack-ups operational excellence customer satisfaction Safety One…
Rowans Fleet Is Geographically Diversified 19 High-spec Jack-ups 9 Premium Jack-ups 3 Commodity Jack-ups with Skid-base 4 Ultra-Deepwater Drillships Under Capability Construction 6 / North Sea 7 / US GOM 11 / Middle…
Rowans 3.4 Billion Backlog Is Diversified Growing Backlog Distributed By Geography GOM Trinidad Egypt 3.4 Bn 3%2% SEA 4% 3% 10% 36% Norway 2.2 Bn UK 1.5 Bn 1.2 Bn 20% 22% Middle East 2010 2011 2012 Current Deepwater…
Rowan Has A Large, Young Jack-up Fleet Age of Global Jack-up Fleet Size of Peer Existing Jack-up Fleets 50 Global Fleet = 492 Jack-ups 43 40 Nearly 2/3 of the jack-up fleet is older than 25 years 40 31 of Jack-ups 30 20 17…
Rowan Is The Leader In High-spec Jack-ups Number of High- Spec Jack-ups 19 20 18 16 14 12 Rowan High-spec 10 Jack-ups 8 6 4 2 0 Current By YE 2015 8 Includes data supplied by ODS-Petrodata, Inc;…
Rowans Fleet Achieves Above Average Day Rates and Highest Utilization vs. Peer Group Comparison of Current Day Rates: Comparison of Utilization: Rowan vs. Peers Rowan vs. Peers (000s) 100 300 259 80 250 200 60 162 150 145…
Global Jack-up Fleet Totals 492 rigs Total Utilization is 86% North Sea 100% 42 Rigs Mediterranean 78% Middle East US GOM 18 Rigs 86% 65% 136 Rigs 62 Rigs Southeast Asia Mexico 86% 93% 74 Rigs C&S America 41 Rigs Indian…
Competitive Jack-up Utilization At 94% 600 492 46 Cold Total Stacked / 56 Non- 500 Jack-ups OOS competitive 390 countries Competitive 400 Jack-ups 300 200 62% older than 25 100 years 0 Total Supply CS / OOS China /…
Jack-up Market Continues To Bifurcate Worldwide Utilization By Rig Class 100 % 80 60 40 20 IS, MS,…
Whats Driving Bifurcation In The J/U Markets Operators need greater rig capabilities to drill challenging wellbore designs Deep shelf gas Long reach horizontals HPHT Large pipe programs/heavy string weights IOCs and NOCs are…
Newbuilds Needed To Replace Aging Fleet 90 80 70 60 312 JACK-UPS 244 JACK-UPS 50 OVER 25 IN LATEST 40 YEARS CYCLE 30 20 10 0 Jack-ups by Year Built 14 Includes data supplied by ODS-Petrodata, Inc; Copyright 2013 (as…
A Wave Of Jack-up Retirements Is Coming World jack-up rig population over 40 years old is growing 300 268 250 18 rigs that are 40+ years old today: Almost half are stacked or being 189 200 converted to non-drilling 150 132…
Rowan Is Entering UDW Market With Advantages Long standing brand reputation for operational excellence and customer satisfaction Very high specification drillship design with built-in redundancies Core team of highly experienced…
UDW Drillships Under Construction 1 2013 2 2014 3 2015 4 Rowan Rowan Rowan Rowan Renaissance Resolute Reliance Relentless 655 M 655 M 650 M 695 M Delivery Delivery Delivery Delivery December 2013 June 2014 October 2014…
Rowan Drillships Built With The Operator In Mind Expanded Capabilities Two seven-ram BOPs And Built-in Redundancies Equipped with 12,000 ft of riser DP-3 compliant with retractable thrusters Five mud pumps with dual mud…
Worldwide Drillship Utilization=95% Worldwide Drillship Fleet At 86 Rigs North Sea 100% 2 Rigs Middle East Far East 100% 100% USA 1 Rig 1 Rigs 95% 19 Rigs Southeast Asia 40% C&S America 5 Rigs Indian Ocean 100% 100% 29…
Strong Demand For UDW Steady Growth In Day Rates Day Rate Fixtures for 10,000+ Drillships: January 2005 - Current 700,000 Renaissance 600,000 Contract 619K 500,000 400,000 300,000 200,000 100,000 0 Rowan Enters UDW…
UDW Newbuilds Being Absorbed By Strong Market Three uncontracted 30 70 - 10,000+ Drillship Newbuilds 2013 drillships Under Construction believed to be 25 committed 20 19 19 3 Operators now 15 focusing on 2014 14 25…
Deepwater Demand Fundamentally Strong 2008 2012, Water Depth 4,000 and Greater Announced Discoveries by Year Percent of Discoveries from Golden Triangle 52 88% 37 37 32 59% 28 51% 47% 42% 10 2008 2009 2010 2011 2012 1Q…
Deepwater GOM Activity Expected To Accelerate Historical & Forecasted US GOM Floating Rig Count GOM deepwater rig count forecast to grow from 36 to as many as 60 rigs by 2015 Development wells forecast to triple to about 70…
Positive Trends Operational Downtime, Out of Service Time 5% Operational Downtime Out of Service 4% 27% 4% 25% 3% 20% 3% 17% 2% 14% 11% 11% 10% 9% 2% 1% 1.37% 1% 0% Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12…
Multiple Factors Will Impact Operating Costs 2013 Operating expenses expected to be 805-815 million, up from 752 million in 2012. Projected Increase in Operating Costs 2013 vs. 2012 Estimated Amount (in Millions) Gilbert Rowe in…
Rowan Newbuild Capex With Four Drillships 1,200 1,000 Millions 800 600 400 200 0 2013 2014 2015 Investment Grade Balance Sheet (Baa3/BBB-) Actual Projected (in millions) 03/31/2013 12/31/2013 Cash and available credit…
Rowans Approach To Allocation Of Capital Return on investment analysis drives all capital decisions Sensitivity analysis Capital cost, Operating Cost, Day Rate, Tax Rate Regular consideration of all options for available capital…
Appendix 30
Current Rowan Avg. Regional Offshore Rig Operating Costs (000s per day) Region Jack-ups Gulf of Mexico Low 40s Low 50s Egypt Mid - High 60s Middle East Low 50s low 70s U.K. North Sea Low 80s Norway North Sea Low 150s Southeast…
Glossary of Terms Blowout Preventer (BOP): An emergency shut-off device comprised of a series, or stack, of valves that shut the wellbore in the event that hydrocarbons enter the wellbore and pressure containment is compromised. The BOP…
Rowan Companies 2800 Post Oak Blvd. Suite 5450 Houston, TX 77056 713.621.7800 www.rowancompanies.com Investor Contact: Suzanne M. Spera Director, Investor Relations ssperarowancompanies.com
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