Execution Year Credit Suisse Vail Energy Summit Matt Ralls, Chief Executive Officer February 12, 2014
Following A Clear Strategic Path Built Around Cost Capital Execution Effectiveness Allocation Starting UDW entry Moderating off rig costs Reinstating quarterly successfully dividend Reducing jack-up out of Improving shipyard…
Rowans Fleet Is Geographically Diversified 4 Ultra-Deepwater Drillships (1) 19 High-spec Jack-ups 8 Premium Jack-ups 3 Commodity Jack-ups with Skid-base Capability 6 / North Sea 7 / US GOM 10 / Middle East Drillship…
Strong Backlog Growth And Diversified Customer Base As of 01/21/2014 Growing Backlog Distributed By Geography GOM 2% Egypt Trinidad 1% SEA 2% 5.0 Bn 5% UK 6% 23% Norway 2.2 Bn 1.5 Bn 1.2 Bn 21% Middle 40% East 2010 2011…
Rowan Is The Leader In High-spec Jack-ups Number of High- Spec Jack-ups 19 20 18 16 14 12 Rowan High- 10 spec Jack-ups 8 6 4 2 0 Current By YE 2017 6 Includes data supplied by ODS-Petrodata, Inc;…
Rowan Achieves Higher Jack-up Day Rates And Utilization Comparison of Current Jack-up Day Rates: Comparison of Jack-up Utilization Rowan vs. Peers (000s) 2003 2013: Rowan vs. Peers 100 300 278 80 250 200 60 177 156 144 144…
Global Jack-up Fleet Utilization Is 89%, Marketed 95% Fleet Total 513 Rigs North Sea 100% 45 Rigs Mediterranean 89% Middle East US GOM 18 Rigs 90% 59% 145 Rigs 59 Rigs Southeast Asia Mexico 95% 89% 74 Rigs C&S America 53…
Only 174 Competitive Jack-ups Less Than 25 Years Old 513 600 41 Cold Total Stacked / 57 Non- Jack-ups OOS competitive 415 500 Countries Competitive Jack-ups 400 300 200 58% Older Than 100 25 Years 0 Total Supply CS /…
Jack-up Market Bifurcation Continues In Improving Market Worldwide Utilization By Rig Class 100 % 80 60 40 20 IS, MS,…
Whats Driving Bifurcation In The Jack-up 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…
A Wave Of Jack-up Retirements Could Be Coming World jack-up rig population over 40 years old is growing 26 294 300 250 of jack-ups 40+ years 200 JACK-UPS JACK-UPS OVER OVER 40+ 40+ YEARS 150 YEARS TODAY IN 10 YEARS…
Newbuild Jack-ups Needed To Replace Aging Fleet 310 299 90 80 70 60 50 JACK-UPS JACK-UPS 40 OVER 25 IN LATEST 30 YEARS CYCLE 20 10 0 Jack-ups by Year Built 168 JACK-UPS DELIVERED Includes data supplied by…
38 Newbuild Jack-ups Are High-Spec 300IC+ Newbuilds Under Construction: 128 Total 60 59 Only 38 of the 128 units under construction are 50 rated as high-spec 40 36 47 33 21% of the high-spec 30 newbuilds are contracted 22 (8…
High-Spec Rates Have Climbed Through Newbuild Cycle 400 250,000 Average Earned Day Rate 300 200,000 150,000 200 187 100,000 100 50,000 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
Rowan Is Confident About 2014 Jack-up Fleet Rollovers 19 of 30 Rowan jack-ups are scheduled to rollover in 2014 12 of the 19 jack-ups are high-spec rigs, and demand for high-spec equipment continues to be strong Locations: Middle…
Rowan Is Entering UDW Market With Advantages High-specification drillship design with built-in redundancies Core team of highly experienced and respected deepwater professionals in place Contracting success demonstrates customer…
Rowan UDW Construction Program Progressing Delivered first UDW rig, Rowan Renaissance, in January 2014 Despite supplier delays, still targeting on rate April 2014 UDW man power ramp up progressing as planned Construction on…
3 of 4 UDW Drillships Contracted 1 2013 2 2014 3 2015 4 Rowan Rowan Rowan Rowan Renaissance Resolute Reliance Relentless Delivered Delivery Delivery Delivery January 2014 June 2014 October 2014 March 2015 3 Year Contract 3…
Worldwide Drillship Utilization Is 96% Total Fleet 96 Rigs North Sea 100% 2 Rigs Middle East Far East 100% 100% USA 1 Rig 3 Rigs 95% 22 Rigs Southeast Asia 67% C&S America 6 Rigs Indian Ocean 96% 100% 28 Rigs 11 Rigs…
Few Newbuild Drillships In Delivery Window Match Specs 10,000+ Drillships 73 Total drillships are under construction 30 27 60% are contracted 25 11 The Rowan Relentless 20 17 16 will be delivered in 15 1 March 2015, and few…
Floater Market Bifurcating At A Fast Pace Worldwide Utilization by Water Depth 100 % 90 80 70 60…
UDW Day Rates Remain at 550K Or Above 700,000 650,000 619K 608K 602K 600,000 550,000 500,000 (1) 450,000 400,000 350,000 300,000 Rowan Industry (1) 461K Transocean 5th Gen rig contracted for eight months in…
Rowan Drillships Drive Sector Leading EPS Growth FactSet estimates as of 02/05/2014 250% Estimated Earnings Growth 200% Expect further EPS growth in 2016+ when all four 144% 150% drillships operate 100% 62% 59%…
Earnings Growth Not Reflected In 2015 Multiples As As of February of April 12, 5, 2012 2014 Aggregate Value Price Aggregate to Value Price to Share Share Price to Earnings Price to Earnings to EBITDA Bookto EBITDA Book…
Rowan Is Focused On Execution-Increasing on Rate Time Operational Downtime Out of Service 3.27% 12% 10% 8% Est. 2.47% 14% 1.89% 13% 1.65% 11%11% 11% 10% 10% 1.37% 1.32% 9% 9% 8% 0.80% 0.74% 5% 5% Rigs are on contract…
Rowan Newbuild Drillship Program Fully Financed Rowan Newbuild Capex With Four Drillships 1,522 MM 455 MM 2014 2015 Investment Grade Balance Sheet (Baa3/BBB-) Projected Projected (in millions) 12/31/2013 12/31/2014 In…
Rowan Is Reinstating A Quarterly Dividend Initiating a 0.10 per share dividend in Q2 2014 Confident in the earnings growth expected from Rowans well positioned jack-up fleet and ultra-deepwater entry Expect to be able to sustain…
Rowan is One Team built around great equipment, great people, and a shared set of values and purpose. 29
Appendix 30
Rowan Drillships Built With The Operator In Mind Two seven-ram BOPs Expanded Capabilities Equipped with 12,000 ft of riser And Built-in Redundancies DP-3 compliant with retractable thrusters Five mud pumps with dual mud…
2013 Operating Cost Components 9% 3% 3% 4% Labor & Fringes Employee-related * 52% R&M 18% Insurance Rig moves Rebillables 11% All other ** * Employee-related costs include training, catering and crew transportation 32 **…
Current Rowan Avg. Regional Offshore Rig Operating Costs (000s per day) Region Jack-ups Gulf of Mexico Low Mid 50s Egypt Low - Mid 60s Middle East Low 50s Low 70s U.K. North Sea Low Mid 80s Norway North Sea Low - Mid 160s…
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 713.960.7517
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