Company Overview & Investment Highlights Market Dynamics Delivering Shareholder Value Conclusion 3
Company Overview & Investment Highlights Market Dynamics Delivering Shareholder Value Conclusion 4
Rowan Overview & Investment Highlights As a result of our strategic initiatives and investments over the past few years, Rowan is now well-positioned to reap significant benefits in the coming years Investment Highlights Company…
1 Rowan is Focused on Demanding Drilling Services Our mission is to be recognized by our customers as the most efficient and capable provider of demanding contract drilling services Rig: Bob Palmer Rig: Scooter Yeargain Customer:…
2 Rowan has a Leading Position in High-Spec Jack-ups Number of High Specification Jack-Ups 20 19 18 Customers Demand Higher-Specification Rigs 16 14 Drilling challenging 12 Rowan High-Spec wellbore designs 10 Jack-ups…
2 Rowan Ultra-Deepwater Drillships are Best in Class Best In Class Features Two seven-ram BOPs Equipped for 12,000 ft water depth 1250 ton hook load DP-3 compliant with retractable thrusters Five mud pumps with split mud…
3 Rowans Diverse Global Footprint Spans Seven Markets North Sea 6 JU Harsh environment HP/HT market Super Gorilla / N-Class well suited US Gulf of Mexico 7 JU(2), 3 UDW(1) HP/HT Deep Gas Key location for demanding UDW Middle…
4 Rowans Four UDW Rigs Contracted; First Three on Rate 1 2 3 4 Rowan Renaissance Rowan Resolute Rowan Reliance Rowan Relentless Delivered Jan 2014 Delivered Jul 2014 Delivered Nov 2014 Delivery Mar 2015 3-Year Contract 3-Year…
Rowan has a Strong Backlog and Diverse Customer Base Contract backlog has quadrupled in four years Strong Coverage in Mid East & N Sea 49%; UDW 43% USD Billions USD Billions 1% 1% 5.1 0% 4% 2% 16% 43% 2.2 1.5 33% 1.2…
5 Strong Balance Sheet = Capital Allocation Options Investment grade credit rating Provides access to capital in strong and weak markets Provides stability and ability to seize opportunities in down markets Undrawn 1 billion…
6 Strong Culture with Experienced and Loyal Workforce 92-Year history of operating excellence Culture of continuous improvement Experienced and loyal employees with proven industry leadership Goal of highest customer satisfaction…
Company Overview & Investment Highlights Market Dynamics Delivering Shareholder Value Conclusion 14
1980s Era Jack-ups Approaching 40 Years of Age Attrition Could Accelerate Design life of 1980s era jack-ups was approximately 30 years Today, 38 jack-ups are 40 years of age or older, 294 jack-ups will reach 40 years of age by 2025…
1980s Era Jack-ups Approaching 40 Years of Age Attrition Could Accelerate Design life of 1980s era jack-ups was approximately 30 years Today, 38 jack-ups are 40 years of age or older, 294 jack-ups will reach 40 years of age by 2025…
Rowan is Currently Competing with Only 22 Newbuild JU Under current ownership, only 22 newbuild jack-ups are clearly competitive with Rowan on near- term opportunities 74 speculator rigs may be cancelled, moved to non-competitive…
Company Overview & Investment Highlights Market Dynamics Delivering Shareholder Value Conclusion 18
Rowan has Established Three Priorities to Increase Value Highest Customers want Safe and reliable operations Customer Operational risk and procedural discipline Satisfaction Low flat spot time Strong Rowan will improve our…
Rowans is Focused on Strong Financial Returns Execution Strong Financial Cost Control Returns Optimal Capital Allocation 20
Execution: Reduce OOS Time, Maintain Low Downtime Rowan is focused on maintaining low levels of operational downtime and reducing out-of-service time (except for repositioning and reaction to market conditions) to drive higher earnings…
Cost Control: Rowan is Focused on Cost Efficiency After Rowans Rapid Expansion into UDW, Norway, and SE Asia, Costs are Moderating Review all back office and support processes for Cost efficiency and focus on control of off-rig costs…
Capital Allocation: Options to Maximize Shareholder Value As Rowan begins to generate free cash flow, we will consider all capital allocation options while maintaining an investment grade credit rating Dividends Plan to modestly grow…
Company Overview & Investment Highlights Market dynamics (especially jack-up market) Delivering shareholder value (especially through allocation of capital) Conclusion 24
Rowan is Positioned to Benefit from its Strategic Actions 1 Competitive differentiation in drilling demanding wells Young high-specification fleet well positioned in key 2 industry segments 3 Geographic diversity with assets…
Appendix 26
Global Jack-up Fleet Utilization is 82%, Marketed 88% Worldwide jack-up utilization by region Fleet total: 541 rigs North Sea 98% 51 Rigs Mediterranean 81% Middle East US GOM 16 Rigs 86% 36% 155 Rigs 56 Rigs Southeast Asia…
Jack-up Market Bifurcation Continues Worldwide jack-up utilization by rig class Percent 100 % 211 units 139 units 80 126 units 60 40 64 units 20 IS, MS,…
High-Spec, Quality Jack-ups Still Command Premium Rates Earned day rates worldwide by rig class USD 250,000 200,000 176K 150,000 116K 100,000 105K 88K 50,000 0 IS, MS,…
Rowan Contract Backlog Extends into 2018 As of 02/19/2015 Fleet Status Report Rowan Relentless UDW Rowan Reliance Rowan Resolute Rowan Renaissance Rowan Norway N SEA Rowan Viking Gorilla VI Rowan Mississippi Hank Boswell May…
Rowan is Marketing its Jack-ups Widely As of 02/19/2015 Fleet Status Report C. Provine Gorilla IV BHP Trinidad USGOM Joe Douglas EXL III Gorilla V N SEA Gorilla VII Stavanger MED R. Coffman Middletown C. Rowan Arch Rowan…
Global Drillship Fleet Utilization is 81%, Marketed 83% Worldwide drillship utilization by region Fleet total: 117 rigs Percent North Sea 100% 1 Rig Far East Mediterranean 0% USA 66% 1 Rigs 85% 3 Rig 39 Rigs Southeast Asia…
UDW Utilization Remains Above 85% So Far Worldwide floater utilization by water depth 100 % 114 units 90 46 units 80 110 units 51 units 70 60…
Later Generation Floaters Attain Higher Rates Earned day rates worldwide by water depth 600,000 513K 500,000 425K 400,000 386K 338K 300,000 200,000 100,000…
Rowans Newbuild Drillship Program is Fully Financed Rowan Remaining Newbuild Capex With Three Drillships as of 09/30/2014 (1) 537 MM 492 MM 2014 2015 Investment Grade Balance Sheet (Baa3/BBB-) Actual Projected (in USD…
Current Rowan Avg. Regional Offshore Rig Operating Costs Region Jack-ups (K/day) Gulf of Mexico Low Mid 50s Middle East Mid 50s Mid 70s U.K. North Sea Mid High 80s Norway North Sea Low - Mid 160s Southeast Asia Mid High 50s…
2014 Operating Cost Components Percentage of total operating costs 9% 3% 1% 3% Labor & Fringes Employee-related * 17% 53% R&M Insurance Rig moves Rebillables 12% All other ** * Employee-related costs include training,…
Rowan Guidance as of November 5, 2014 3Q 2014 4Q 2014 FY 2014 FY 2015 Key metrics: Actual Projected Projected Projected (2) Jack-up Out of Service Time 9% 7-8% 10% 3-6% Jack-up Operational Downtime (unbillable) 1.0% 2.5% 2.5% 2.5%…
Outstanding Debt is 2.8 Billion as of September 30, 2014 Outstanding debt notes and September 30, 2014 maturity date Carrying Value 5% Senior Notes, due 2017 399,173 7.875% Senior Notes, due 2019 498,418 4.875% Senior Notes, due…
Glossary of Terms and Acronyms 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…
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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