Rowan Companies, Inc. Credit Suisse Energy Summit Matt Ralls, President & CEO February 9, 2011 Vail, Colorado Photo of the N-Class Rowan Viking en route to the North Sea in November 2010. 1
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Offshore Drilling g Is Rowans Dominant Segment g Revenue EBITDA USD MM USD MM 1,400 55% 800 1,200 59% 79% 56% 87% 1,000 600 85% 800 34% 31% 34% 400 600 400 11% 10% 200 10% 10% 11% 200 6% 7% 7% 8% 0 0 2008 2009 2010E…
Rowan Highlights g g Focused on customers with demanding drilling Leading Global, Will own close to 40% of global high-spec jack-up fleet High spec Jack-up High-spec Jack up One of the youngest o ngest fleets in the industry ind…
Rowans Jack-Up p Fleet Focuses On Demanding g Drilling g 28 jack-up rigs operating worldwide capable of drilling up to 35,000 feet in up to 550 feet of water 16 high-spec cantilever jack-up rigs, nine premium jack-ups, and three…
N-Class Jack-ups p Fit Rowans Strategy gy Hook-load capacity: 2.2 million pound Conventional Drilling and Production State-of-the-art automated pipe handling Can support combined drilling and 2.2MM lb production operations…
Rowan N-Class Rigs g Committed Rowan Viking Received a LOI from Total UK for 19 months of work in the low 220s per day Rowan Stavanger Received a LOI from Talisman Norway for 90 to 120 days for accommodation work in the l low…
Worldwide JU Utilization=68% ((76% Excludingg U.S. GOM)) North Sea 82% 31 7 Mediterranean 52% Middle East US GOM 13 12 75% 36% 89 29 32 56 Southeast Asia Mexico 77% 83% 47 14 C&S America 20 4 Indian Ocean 75% 92% 12 4…
Increasing g Demand For High-End g Jack-ups p (=350 ( WD)) 345 Contracted 326 Contracted Jack-Ups Jack-Ups Number 350 of Rigs Contracted 300 250 200 31% DECREASE 150 100 197% INCREASE 50 0 2001 Current High-End…
Utilization At 85% For Highest g Capability p y Jack-ups p % of Global of Rigs Utilization Jack-up Fleet 350 ft. IC+ 137 85% 28% 300 ft. IC 129 70%…
Day y Rates Significantly g y Higher g For More Capable p JUs 200,000 180,000 Average Fixtures 160,000 140,000 120 000 120,000 100,000 80,000 60,000 40,000 20,000 0 MC+MS…
Specifications p for Leading g Edge g Rigs g Increasing g Rig Specifications Year 2000 Year 2005 Year 2010 Rigs Class Example 116-C Tarzan N-Class/Super Gorilla Cantilever Reach 45-52 ft. 60 ft. 70-100 ft. Drilling…
Relevant JU Supply pp y Is Lower Than Apparent pp Supply pp y 78 rigs are cold stacked / out of service Only 18 newbuilds are high-spec, and three are Rowan rigs Rigs 550 500 477 39 450 39 61 4 16 49 400 4 388 350…
Rowans Jack-up p Fleet Is Young g Compared p To Peers 69% of global jack-up fleet is Rig additions will reduce Rowans older than 25 years average fleet age to 16 years Years Average Peer Jack-up Fleet…
Rowan Is The Market Leader In High-Spec g p Jack-ups p Rowan will own 19 of the 49 high-spec jack-ups by year-end 2013 Number 20 of High- 18 Spec Rigs 16 14 12 10 8 6 4 2 0 16
Rowan Earns Premium Day y Rates 150,000 Current Earned Jack-up Day Rates 125,000 100 000 100,000 75,000 50,000 25,000 0 RDC RIG PDE ESV DO NE 17 Includes data supplied by ODS-Petrodata, Inc; Copyright 2011
Rowans Geographical g p Diversification Continues Year End 2003 Today One of these 24 Total Rigs 28 Total Rigs rigs to depart Canada Egypt Mexico for the Middle North Sea 1 Trinidad 1 East in Q2 2011 1 1 1 10 Gulf of Gulf of…
Rowans Backlog g Is Mostly y International Mexico Trinidad Middle East 9% 2% Land 1.7 billion in drilling 9% 39% commitments as of 12/22/2010 Gulf of Mexico 16% Over 1.4 billion added since early 2010 26% North Sea…
International Tender And Inquiry q y Activity y For Rowan Rigs g North Sea, Middle East and Southeast Asia Driving Rig Demand North Sea 21 Rigs Mediterranea n 1 Rigs Middle East Mexico 25 Rigs 7 Rigs g Southeast Asia C&S…
Delivered 6 New High-Spec g p Jack-ups p In The Past Year 1 2 3 4 5 6 EXL 1 EXL 2 EXL 3 Ralph Coffman EEnhanced h d Super S EEnhanced h d Super S Rowan Vikingg Rowan Stavanger 240C Class N-Class 1 EEnhanced h d Super S 116E…
Rowan Has 3 High-Spec g p Newbuilds Under Construction Rowan Norway Joe Douglas EXL 4 1 2 3 Delivery Jun-2011 Delivery Sept-2011 Delivery Jan-2012 USD MM 700 600 Rowan newbuild 500 capex substantially 400 N-Class 300 240C…
Substantial Liquidity, q y, Investment Grade Credit Rating g Preliminary Projected 12/31/2010 12/31/2011 Cash and restricted cash 453 200 300 Credit Facility* 600 250 Total Liquidity 1,053 450 550 Total Debt 1,186 1,485 Total…
Declining g Effective Tax Rate 2008 2009 2010 2011 34 6% 34.6% 31.7% 31 7% 26% Lo 20s % Low (normalized) (estimated) Through 2007, 2007 all rigs owned in US Subsidiaries Since 2008, certain rigs owned in foreign subsidiaries…
Rowan Land Rigs g Suited For Current Requirements q 28 marketed rigs 82% contracted at an average day rate of 20,000 Ideally suited for horizontal drilling 25 of our land rigs are 2,000 HP or greater 18 are AC ddrive i OK 2…
Built on EXPERIENCE Driven by VISION www.letourneau-inc.com DRILLING PRODUCTS MINING PRODUCTS LeTourneaus vision is to be recognized by their customers as designing, building and supporting the most innovative, capable and…
LeTourneau Highlights g g Diversified, Worlds largest installed base of jack-up rigs technologically focused Innovative drilling and mining equipment original equipment Unique, industry leading electric drive system manufacturer…
LeTourneau Provides A Varied Product Portfolio Drilling Products Mining Products Offshore Products Drilling Systems Offers five high-spec and Manufactures drilling equipment Offers front-end loaders for premium jack-up rig designs…
LeTourneau Supported pp By y External* Backlog g 2011 Outlook 299 MM in Backlog (12/31/10) Revenues R expected t d tto b be up Steel Products Offshore slightly over 2010 3% Products Margins improving 13% Loader shipments…
Summary y Leading L di Global, Gl b l SStrategically i ll Conservative High-spec Jack-up Focused On Financial Profile Company Offshore Drilling With Strong Balance Sheet 30
Rowan Companies, Inc. 2800 P Post O Oak k Bl Blvd. d Suite 5450 Houston, TX 77056 713 621 7800 713.621.7800 www.rowancompanies.com Investor Contact: Suzanne M. McLeod Director, Investor Relations smcleodrowancompanies.com
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