rowan strong: safe. reliable....

Rowan Strong: Safe. Reliable. Efficient. March 1, 2017

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Forward-Looking Statements

Statements herein that are not historical facts are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected business, financial and operating performance and prospects of the Company. These forward-looking statements are based on our current expectations and are subject to numerous risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements.

Among the factors that could cause actual results to differ materially include oil and natural gas prices and impact of the economic climate; changes in the offshore drilling market, including fluctuations in supply and demand; variable levels of drilling activity and expenditures in the energy industry; changes in day rates; ability to secure future drilling contracts; cancellation, early termination or renegotiation by our customers of drilling contracts; customer credit and risk of customer bankruptcy; risks associated with fixed cost drilling operations; unplanned downtime; risks related to our joint venture with Saudi Aramco; cost overruns or delays in transportation of drilling units; cost overruns or delays in maintenance, repairs, or other rig projects; operating hazards and equipment failure; risks of collision and damage; casualty losses and limitations on insurance coverage; weather conditions in the Company’s operating areas; increasing costs of compliance with regulations; changes in tax laws and interpretations by taxing authorities; hostilities, terrorism, and piracy in our areas of operations that may result in loss or seizure of assets or interruption of operations; impairments; the outcome of disputes, including tax disputes and legal proceedings; and other risks disclosed in the Company’s filings with the U.S. Securities and Exchange Commission.

Each forward-looking statement speaks only as of the date hereof, and the Company expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law.

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Company Overview & Investment Highlights

Market Dynamics

Delivering Value

Rowan has evolved into a pure play, high-specification offshore driller

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COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS MARKET DYNAMICS DELIVERING VALUE

Rowan is well positioned to navigate the current challenging market and capitalize on investments to improve our return on capital

Rowan is well positioned to navigate the current challenging market and capitalize on investments to dramatically improve our return on capital

(1) Estimate as of January 31, 2017 (2) Ultra-deepwater (UDW) refers to floating drilling rigs rated for water depths of 7,500 feet or greater (3) High-specification defined as rigs with a two million pound or greater hookload capacity

Company Overview

• RDC: NYSE-listed

• ~2,800 direct employees worldwide(1)

• 29 offshore drilling units

• 4 UDW(2) drillships

• 25 Jack-ups

• 19 High-Specification(3)

• 6 Premium

Investment Highlights

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Groundbreaking partnership with Saudi Aramco creates long-term growth

Competitive differentiation in drilling demanding wells

Modern high-specification fleet strategically positioned in global markets

Experienced and proven workforce & processes focused on performance

Backlog diversified among premium customer base, geographic regions, and asset types

Strong & flexible financial position 6

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Key Investment Takeaways:

• Partnering with the largest customer for jack-ups in the world in largest market for jack-ups in the world

• High utilization for contributed assets (five from Rowan & two from Saudi Aramco) for the remainder of their useful lives

• Opportunity to contract additional assets to new company through agreed leasing structure

• Strong visible organic growth – twenty newbuilds against long term contracts. Expected returns are commensurate to Rowan’s target for similar risk profile opportunities

• Expect to generate substantial long term cash flow



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Rowan and Saudi Aramco will form a 50/50 joint venture to own and operate jack-up drilling rigs in Saudi Arabia. The new company will operate independently with a separate dedicated management team, ensuring an arm’s length relationship.

Rowan named Kelly McHenry as CEO and head of operations; Saudi Aramco has named Chairman and CFO.

In 2017, Rowan contributes the Gilbert Rowe, the Bob Keller, the J.P. Bussell, related inventory and local shorebase operations; Saudi Aramco contributes their two rigs, SAR-201 and SAR-202, related inventory and additional cash to make up the difference in value of asset contributions between the partners.

In late 2018, Rowan contributes the Hank Boswell and the Scooter Yeargain as they complete their current contracts, and Saudi Aramco will contribute equivalent value.

The new company will also manage Rowan’s other (non-contributed) rigs in Saudi Arabia until their current contracts expire, when the new company may lease the rigs from Rowan as needed.

The new company plans to order up to 20 rigs to be delivered over ten years, beginning as early as 2021, to meet offshore drilling demand in the Kingdom.

Rig orders will be supported by contracts from Saudi Aramco as the customer, at defined returns commensurate to similar risk profile opportunities.

Both partners intend for the new company to be self and externally funded. No additional equity injections are expected (although both Saudi Aramco and Rowan remain fully committed to the success of the new company).

Scope: 50/50 JV

Contributions: Five Rigs from Rowan & Two Rigs From Saudi Aramco

Newbuild Growth


Competitive: 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”

Rowan ranks #1 among offshore drillers for HPHT applications in six out of

the last seven Energypoint Research Inc. surveys

Rowan’s Demanding Drilling Achievements:

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High-Specification: Rowan has a leading position in high-spec jack-ups

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0

2

4

6

8

10

12

14

16

18

20

19 Rowan High-Spec

Jack-ups

Customers Demand Higher-Specification Rigs

• Flexibility to address technical needs across diverse wellbore portfolios

• Focus on achieving lower wellbore costs

• Comply with higher regulatory standards

• Rowan specializes in rigs that have:

• 2,000,000+ lb hookload

capability

• Rugged and reliable legs and

jacking systems

• Efficient, high pressure drilling

systems

Number of Delivered High-Specification Jack-ups *

* Approximately 50 additional high-specification jack-ups are currently on order or under construction. Includes data supplied by IHS-Petrodata, Inc. Copyright 2017 and Rowan Companies as of February 13, 2017.

High-Specification: Rowan has a leading position in high-spec jack-ups

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High-Specification: Rowan’s ultra-deepwater drillships are best-in-class 3

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Best-in-Class Specifications:

• 1,250 ton hookload

• Dual 7-ram blowout preventers

• Managed Pressure Drilling capable

• Advanced Riser Gas Handling

• 12,000 ft water depth equipped

• IMO Tier III emissions compliant

Few rigs possess the specifications required for today’s demanding wells and tightening regulations

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105

16 32

166

1,250 tons Dual BOP

1,250 tons Single BOP

1,000 tons 750 tons All UDW

Under 20% of UDW Rigs*

High-Specification: Rowan’s ultra-deepwater drillships are best-in-class

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14 each 1,250 ton dual stack 40 cold stacked – 9 x 750 27 x 1000 4 x 1250 (1 is dual BOP) * Includes data supplied by IHS-Petrodata, Inc; Copyright 2017; Rowan estimate, excludes eighteen 1,000-ton and twenty-two 1,250-ton newbuilds; as of January 4, 2016.


$60 $150 $1,289

$0

$209

$657

$398

$500

$400 $400

$0

$250

$500

$750

$1,000

$1,250

$1,500

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2042 2043 2044

USD

Mill

ion

s

Revolver Due

Purchased via Tender**

Purchased in Open Market

Current Bond Debt

Strong Financial Position: Our robust balance sheet and highly visible runway bolster our financial health through the cycle

• Strong balance sheet provides the ability to invest counter-cyclically to significantly improve our return on capital

• Retired ~$740 million of debt since 4Q 2015, while issuing $500 million of unsecured debt not due until 2025

• Attractive debt maturity profile with significant untapped borrowing capacity available from $1.5B revolver*

• Current cash balance combined with our untapped revolver exceeds our total outstanding debt

*As of February 13, 2017; availability under the facility is $1.5 billion through January 23, 2019, declining to $1.44 billion through January 23, 2020, and to

approximately $1.29 billion through the maturity in 2021. All debt is unsecured.

**Following the tender offer, the remaining ~$92 million of the 2017 bonds were retired on February 8, 2017 .

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7.875% 4.875% 4.750% 7.375% 5.400% 5.850%



Market Dynamics

Delivering Value

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Outlook: In 2017, although far from a recovery, we are starting to see some “green shoots”


• Current forecast for crude oil prices are expected to be broadly supportive for an increase in drilling activity; however, 2017 is likely to favor onshore shale drilling in North America

• Overall, we expect jack-up demand to bottom in late 2017 and floater demand to bottom in 2018. We are seeing more tenders for jack-up work in 2017 and 2018, with floater discussion primarily focused on 2018

• For both jack-ups and floaters there is a large roll-off of existing contracts in 2017 & 2018; a significant number of new contracts are required to meet even modest demand forecasts, although lower day rates are expected

• We expect these new contracts to be dominated by newer, higher specification drilling rigs operated by established drilling contractors with a more certain future

• Pricing recovery is some time in the future; more rig attrition is needed

• Rowan is well positioned with a modern fleet & established track record; however, we know we are in a highly competitive landscape!

* Includes data supplied by IHS-Petrodata, Inc., Copyright 2017; and Rowan Analysis; as of February 13, 2017.

Roll-off of Contracted Floater Fleet

0

50

100

150

200

250

YE’

25

YE’

17

YE0

8

YE0

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YE1

3

YE’

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YE’

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YE0

6

YE0

9

YE’

22

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YE1

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YE1

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YE1

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YE1

1

YE’

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YE’

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• 2017 brings a dramatic increase in roll-offs of contracts signed in the 2011 to 2014 up cycle

• 28% of all floaters are older than 20 years; they currently represent 24% of working floaters

• New contracts expected to favor modern rigs; older rigs will be much less competitive, unless they have a “niche”

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Fleet Pre 1996 - Existing Contracts

Fleet Post 1996 - Existing Contracts

Contracted Rig Demand (Estimated)

Contracted Rig Demand (Actual)

Floaters: In 2017, there is a substantial roll off of the current floater contracts; we believe this will force attrition of remaining older rigs

40

60

80

100

<5,000'

5,000'-7,499'

7,500'+ / <1,250 tons

7,500'+ / 1,250+ tons

Worldwide Floater Total Utilization by Water Depth / Hookload (%)

61 units

103 units 83 units 36 units


Jack-ups: In 2017 there is a substantial roll off of the current jack-up contracts; we believe this will force attrition of older rigs

• 2017 brings a dramatic increase in roll-offs of contracts signed in the 2011 to 2014 up cycle

• 39% of all JUs are older than 20 years; they currently represent 45% of working JUs

• Less technical obsolescence than in floater market

• Many newbuilds will require a change of ownership before they can be marketed effectively

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Roll-off of Contracted Jack-up Fleet

0

50

100

150

200

250

300

350

400

YE’

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YE’

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YE1

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YE1

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YE1

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YE0

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YE0

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YE0

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YE’

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YE’

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YE’

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Post 1996 JUs - Existing Contracts

Pre 1996 JUs - Existing Contracts

Contracted Rig Demand (Estimated)

Contracted Rig Demand (Actual)

** Jack-ups with two million pound or greater hookload

*Includes data supplied by IHS-Petrodata, Inc., Copyright 2017; and Rowan Analysis; as of February 13, 2017.

Worldwide Jack-up Total Utilization by Rig Class (%)

20

40

60

80

100

IS, MS, MC <300'IC 300'IC 350'+ IC High Spec*

64 units 117 units 147 units 139 units

55 units



Market Dynamics

Delivering Value

Repeatable excellence: We are systematically driving performance across the company

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Major Areas of Focus in Driving Performance

Drive WASTE out of our operations • Applying LEAN philosophy to identify & eliminate waste

in our onshore and offshore operations • Advancing a performance program to improve drilling

efficiency & using analytics to harvest data to drive performance and lower costs

Control spend and focus on capital allocation • Reduce drilling expense by improving procurement

effectiveness: centralize and optimize all spend • Strong inventory control through rigorous data analytics • Implementing a fleet-wide state-of-the-art maintenance

system for improved reliability and to optimize maintenance spending

Much of our cost is personnel-related • Preserve key talent through high-grading of onshore and

offshore workforce; use of an aggressive bump back strategy to preserve our talent in this downturn

• Reduce overhead costs (SG&A and a portion of drilling expense) by improving the efficiency and cost of business support functions

Analyzing variance in performance of drilling crews

Optimized capital allocation: Rowan has an unrelenting focus on improving long-term return on invested capital

Rowan will consider all capital allocation options, but remains committed to maintaining an attractive credit profile and financial flexibility. During the current challenging business environment, we favor:

Strong Liquidity 3Q2016 – Generated $276 million of cash

during the quarter and currently have a balance in excess of $1.1 billion

Debt Reduction Retired ~$740 million of debt since 4Q 2015,

while issuing $500 million of unsecured debt not due until 2025

Opportunistic Asset Investments We continue to evaluate opportunistic

investments in assets Investments at attractive prices in the bottom

of the cycle should generate superior returns

Available

Capital

Allocation

Options

Preserve Liquidity

Dividends/ Share Repurchases

Asset Investments

Retire Debt

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Appendix

Supported by higher oil prices, global drilling & completions spending is forecast to be up slightly in 2017, but favors onshore in the near term

Independents and national oil companies (majority of land & jack-up demand) are forecast to increase their spending in 2017, with majors (significant source of floater demand) expected to delay incremental offshore spending until cash flows accumulate above their dividend expense

NAM Onshore Offshore & Int’l Onshore Global Overall

Drilling & Completion Budget Forecasts*

* Source: Wells Fargo Securities, January 11, 2017

2017 est. +7% 2017 est. +55% 2017 est. -9%

APPENDIX

Worldwide marketed* jack-up utilization down to 68%

* Excludes Cold Stacked / Out of Service units

Includes data supplied by IHS-Petrodata, Inc; Copyright 2017 as of February 13, 2017

Marketed Supply: 458 units

US GOM 60%

10 Rigs Mexico

59%

44 Rigs C&S Am 64%

11 Rigs

W. Africa 37%

19 Rigs

North Sea 65%

46 Rigs Middle East

72%

162 Rigs

India 91%

43 Rigs

SE Asia 52%

54 Rigs

Australia 100%

1 Rig

Mediterranean 80%

15 Rigs

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APPENDIX

0%

1 Rig

Worldwide marketed* UDW** utilization has dropped to 71% Marketed Supply: 129 units

*Excludes Cold Stacked / Out of Service units

**UDW includes semis and drillships with a rated water depth of 7500’+

Includes data supplied by IHS-Petrodata, Inc; Copyright 2017 as of February 13, 2017

Far East 25%

4 Rigs

W. Africa 58%

31 Rigs

C&S Am 87%

31 Rigs

Mexico 75%

4 Rigs

USA 72%

36 Rigs

E. Canada 100%

1 Rigs

North Sea 86%

7 Rigs

Mediterranean 80%

5 Rigs SE Asia 60%

10 Rigs

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APPENDIX

Considerable improvement in operational performance and EBITDA margins over the last three years

$ in millions

Operational Performance has improved while costs have been reduced

From initial 2015 guidance issued in November 2014 – Current*: • Best safety performance on

record in 2015 and 2016

• Downtime held essentially flat while delivering our final two drillships

280

135

1,145

98

650

-61%

-28%

-43%

Non-newbuild Capex

110

SG&A Drilling Expense

Midpoint of Current Guidance for 2017

Midpoint of Initial Guidance for 2015

USD

mill

ion

s

* As of February 24, 2017; some portion of Drilling Expense reduction is due to the formation of the new drilling company with Saudi Aramco

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APPENDIX

APPENDIX

Rowan guidance as of February 24, 2017

Key metrics: FY 2016

Actual

4Q 2016

Actual

1Q 2017

Projected

FY 2017

Projected

Jack-up Operational

Downtime

(unbillable)

1.4% 1.5% ~2% ~2%

Drillship Operational

Downtime (1) .1% 0% ~5% ~5%

Contract Drilling Expenses

(excluding rebills) $950 MM $174 MM ~$170 MM

$625 - $675 MM(2)

SG&A $102 MM $26 MM ~$26 MM $95 - $100 MM

Depreciation $403 MM $102 MM Not Guided $385 - $395MM

Interest Expense,

Net of Capitalized Interest $156 MM $39 MM Not Guided $155 - $160MM

Effective Tax Rate

(normalized)

Low single digits

-- Income Tax

Expense ~$10 - $15MM

Income Tax Expense ~$50MM

Capital Expenditures $118 MM $29 MM Not Guided $105 - $115MM(2)

(1) Rowan expects operational downtime for the drillships to be approximately 5%.

(2) Rowan expects to incur full-year 2017 drilling expense of between $625MM and $675 MM, depending upon whether certain idle rigs secure additional work.

(3) Rowan expects 2017 maintenance capital expenditures to range from $105 - $115 MM , excluding any contractual modifications that may arise due to securing

additional work, none of which is currently planned. 27

Investor Contacts:

Chris Pitre VP, Investor Relations and Corporate Development [email protected] +1 713 968 6642 Carrie Prati Manager, Marketing and Investor Relations [email protected] +1 713 960 7581

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rowan strong: safe. reliable....

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