Rowan Has Evolved into a Pure Play, High-Spec Offshore Driller COMPANY OVERVIEW 5
Rowan Overview & Investment Highlights COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS As a result of our timely strategic decisions, investments and solid financial position, we believe Rowan is well positioned to navigate the current…
1 Rowan is Focused on Demanding Drilling Services COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS Our mission is to be recognized by our customers as the most efficient and capable provider of demanding contract drilling services Rowans…
2 Rowan Has a Leading Position in High-Spec Jack-ups COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS High-Specification Jack-up Fleet Well Positioned to Outperform 2,000,000+ lb hookload capability Rugged and reliable legs and jacking…
2 Rowan Ultra-Deepwater Drillships are Best-in-Class COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS Best-in-class drillships, all on contract Dual, redundant seven- ram BOPs 2,500,000 lb hook load Designed and equipped for 12,000…
2 Rowans Fleet Strategically Positioned in Global Markets COMPANY OVERVIEW 10
Rowan has Solid Backlog with Diversity of Customers, 3 Geographic Regions, and Asset Base COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS Contract Backlog by Region & Asset Type Contract Backlog* by Customer Type 2% 6% 13% 46% NOCs…
4 Strong Financial Position COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS Strong balance sheet provides the ability to invest counter-cyclically Attractive debt maturity profile with significant untapped borrowing capacity available from…
4 Strong Financial Position COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS Rowan has 0 in Newbuild Capex Commitments and only 755mm in Debt Maturities through 2021* 358 million in 2017 397 million in 2019 10,014 8,704 6,710 USD…
5 Rowan Has an Experienced and Loyal Workforce COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS 93-year history of operating excellence Culture of continuous improvement Experienced and loyal employees with proven industry leadership…
Company Overview & Investment Highlights Market Dynamics Delivering Shareholder Value Conclusion
More Capable Rigs Are Likely to Work Through the Cycle - Jack-ups Worldwide Jack-up Total Utilization by Rig Class MARKET DYNAMICS 100 % 80 60 40 20 IS, MS,…
More Capable Rigs Are Likely to Work Through the Cycle - Jack-ups Number of High-Specification Jack-ups MARKET DYNAMICS 19 20 Customers Demand 18 Higher-Specification Rigs 16 14 Drilling challenging 12 Rowan High-Spec wellbore…
More Capable Rigs Are Likely to Work Through the Cycle - Drillships & Semi-Submersibles Worldwide Floater Total Utilization by Water Depth / Hookload MARKET DYNAMICS 100 % 90 80 70 60…
More Capable Rigs Are Likely to Work Through the Cycle - Drillships & Semi-Submersibles MARKET DYNAMICS Few rigs possess the specifications required for todays demanding wells and pending regulations Best-in-Class Specifications:…
Company Overview & Investment Highlights Market Dynamics Delivering Shareholder Value Conclusion
Priorities to Deliver Shareholder Value DELIVERING SHAREHOLDER VALUE Customers want: Highest Safe and reliable operations Managed operational risk Customer Procedural discipline Satisfaction Low flat spot time Solid counterparty…
Rowan is Focused on Strong Financial Returns DELIVERING SHAREHOLDER VALUE Execution Strong Financial Cost Control Returns Optimal Capital Allocation 22
Executing Operational Efficiency DELIVERING SHAREHOLDER VALUE Rowan is focused on maintaining low levels of operational downtime and out-of-service time to drive higher earnings and improve margins Unbillable Operational Downtime…
Cost Control Focus Has Had Material Impact DELIVERING SHAREHOLDER VALUE in millions 2015 2016 Category Nov. 2014 Actual 2015 Actual Feb. 2016 May 2016 Projected Results Reduction Reduction from Nov. from Year 2014 End 2015…
Optimal Capital Allocation: Focus on Maintaining Strong Balance Sheet DELIVERING SHAREHOLDER VALUE Rowan will consider all capital allocation options, but remains committed to maintaining an attractive credit profile and financial…
Company Overview & Investment Highlights Market Dynamics Delivering Shareholder Value Conclusion
Rowan is Positioned to Benefit from its Strategic Actions 1 Competitive differentiation in drilling demanding wells 2 High-specification fleet well positioned in key industry segments Solid contract backlog diversified among…
Appendix
Worldwide Marketed* Jack-up Utilization has dropped to 74% Marketed Supply: 461 units APPENDIX North Sea 87% 45 Rigs Mediterranean 86% Middle East US GOM 14 Rigs 81% 35% 157 Rigs 20 Rigs Southeast Asia Mexico 56% 70% 59…
Worldwide Marketed* UDW Utilization has dropped to 78% Marketed Supply: 144 units APPENDIX N Sea 0% 1 Rig E. Canada 86% 100% 7 Rigs 3 Rigs USA Far East Mediterranean 90% 67% 42 Rigs 57% 7 Rigs 3 Rigs SE Asia Mexico 43%…
Current Rowan Average Regional Offshore Rig Operating Costs APPENDIX As of May 2016 As of September 2014 Region Jack-ups (K/day) Jack-ups (K/day) Gulf of Mexico Low 40s Low Mid 50s Middle East Low 40s Low 60s Mid 50s Mid 70s U.K.…
Operating Cost Components APPENDIX Percentage of total estimated 2016 operating costs 2% 10% 2% 3% Labor & Fringes Employee-related * 18% R&M 57% Insurance Rig moves 9% Rebillables All other ** * Employee-related costs…
Rowan Guidance as of May 4, 2016 APPENDIX 4Q 2015 FY 2015 1Q 2016 2Q 2016 FY 2016 Key metrics: Actual Actual Actual Projected Projected Jack-up Operational Downtime Less than 1% 1% Less than 1% 3% 2.5% (unbillable) Drillship…
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