11 01-16 rdc investor-presentation_website_final

Rowan Strong: Safe. Reliable. Efficient.November 1, 2016

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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 certain 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, the level of offshore expenditures by energy companies, variations in energy demand, changes in day rates, cancellation, early termination or renegotiation by our customers of drilling contracts, risks associated with fixed cost drilling operations, cost overruns or delays in transportation of drilling units, cost overruns or delays in maintenance and repairs, cost overruns or delays for conversion or upgrade projects, operating hazards and equipment failure, risks of collision and damage, casualty losses and limitations on insurance coverage, customer credit and risk of customer bankruptcy, conditions in the general economy and energy industry, weather conditions and severe weather in the Company’s operating areas, increasing complexity and costs of compliance with environmental and other laws and regulations, changes in tax laws and interpretations by taxing authorities, civil unrest and instability, terrorism, piracy and hostilities in our areas of operations that may result in loss or seizure of assets, the outcome of disputes and legal proceedings, effects of the change in our corporate structure, 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 Shareholder Value

Conclusion

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

COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS MARKET DYNAMICS DELIVERING SHAREHOLDER VALUE CONCLUSION

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Rowan is well positioned to navigate the current challenging market and capitalize on investments to dramatically 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) Approximate value as of September 30, 2016(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

• ~3,100 direct employees worldwide(1)

• 31 offshore drilling units

• 4 UDW(2) drillships

• 27 Jack-ups

• 19 High-Specification(3)

• 8 Premium

Investment Highlights

1

2

3

4

5

Competitive differentiation in drilling demanding wells

Modern high-specification fleet strategically positioned in globalmarkets

Experienced and proven workforce & processes focused on performance

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

Strong & flexible financial position


5

Competitive: Rowan is focused on demanding drilling services1

“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 five out of the last six EnergypointResearch Inc. surveys

Rowan’s Demanding Drilling Achievements:


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Global: Rowan’s fleet is strategically positioned in key markets2

• HP/HT Deep Gas

• Key location for demanding UDW

US Gulf of Mexico 2 JU; 4 UDW

• Demanding environmental

conditions

Central & South America 3 JU

• Harsh environment HP/HT market

• Super Gorilla / N-Class well suited

North Sea 6 JU

• Most active jack-up region

in the world

Middle East 13 JU

Featuring:

4UDW

Drillships

19High-Spec

Jack-ups

5Premium

Jack-ups

Note: Excludes three cold-stacked older jack-ups, one of which is ‘sale pending’


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High-Specification: Rowan has a leading position in high-spec jack-ups 2


8

0

2

4

6

8

10

12

14

16

18

20

19Rowan High-Spec

Jack-ups

Customers Demand Higher-Specification Rigs

• Drilling challenging

wellbore designs

• Focused on achieving

lower wellbore costs

• 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 2016 and Rowan Companies as of October 31, 2016

High-Specification: Rowan has a leading position in high-spec jack-ups 2


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High-Specification: Rowan’s ultra-deepwater drillships are best-in-class 2


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* Includes data supplied by IHS-Petrodata, Inc; Copyright 2016; Rowan estimate, includes newbuilds; as of August 16, 2016.

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Best-in-Class Specifications:

• 1,250 ton hook load

• Dual 7-ram blowout preventers

• Managed Pressure Drilling capable

• Advanced Riser Gas Handling

• 12,000 ft water depth equipped

• IMO Tier III emissions compliance

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

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140

23 45

221

1,250 tons Dual BOP

1,250 tons Single BOP

1,000 tons750 tonsAll UDW

Under 20% of UDW Rigs*

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


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93-year history of operating excellence

Culture of continuous improvement

Experienced employees with proven industry leadership

Strong commitment to performance delivering safe, reliable and efficient operations for our customers

3 Proven: Rowan has an experienced workforce and established processes


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Backlog Diversified: Rowan has solid backlog with diversity of customers, geographic regions, and asset types4

Total backlog of $2.2B* that extends to 2024

* Backlog as of October 18, 2016

50%

31%

11%6%

2%

Middle East Deepwater Norway Trinidad UK

Majors / Independents50%

NOCs50%

Over 80% of backlog is with NOCs or investment grade customers

Contract Backlog by Region & Asset Type

Contract Backlog by Customer Type

Rowan has key competitive advantages in adding new backlog:

• Solid track record as a capable and efficient driller of demanding wells

• Modern, high specification fleet

• Deep customer relationships

• Strong financial counterparty to customers


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0 12 24 36 48 60 72

ORIGSDRLPACDATW

RIGNE

ESVDO

RDC

2016 2017 2018 2019 2020 2021

Maturity of Revolving Credit Facilities for Peer Group

5

$0

$4,000

$8,000

$12,000

2016 2017 2018 2019 2020 2021

Total Peer Group Debt Maturities and Newbuild Commitments*

Rowan Debt

Peer Group Debt

* Source: FactSet, Company Filings as of 2Q2016; includes Newbuild Capex Commitments and Debt Maturities for DO, ATW, NE, PACD, ESV, ORIG, RIG, SDRL

• Rowan has the longest visible runway of the publicly traded offshore drillers• Rowan’s cash balance of $1.2+ billion exceeds all debt maturities through 2021• Many peer group revolving credit facilities will expire prior to significant

debt maturities and capital commitments

Mill

ion

s

Strong Financial Position: In an uncertain near-term market, having long-term liquidity visibility provides Rowan with a clear advantage

N/A


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5Strong Financial Position: Our robust balance sheet and industry-leading liquidity runway assure our financial health through the cycle

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

• Retired $150 million of debt since 4Q 2015, eliminating $10 million/year in interest payments

• 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 November 1, 2016; 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.

$358 $397

$700

$400 $400 $400

$60 $150 $1,289

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

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

Mill

ion

s

Bond Debt

Revolver Due

5.0

00

%

7.7

85

%

4.8

75

%

4.7

50

%

5.4

00

%

5.8

50

%


15

0

2,000

4,000

6,000

8,000

10,000

Ro

wan

755

Co

mp

any

A

Co

mp

any

E

Co

mp

any

F

Co

mp

any

G

Co

mp

any

H

Co

mp

any

D

Co

mp

any

C

Co

mp

any

B

USD

mill

ion

s

Source: Company filings; as of 2Q2016; Competitive Companies include ATW, DO, ESV, NE, ORIG, PACD, SDRL & RIG.

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Newbuild Commitments through 2021

Debt Maturities through 2021

• Rowan has $0 in Newbuild Capex Commitments and only $755mm in Debt Maturities through 2021

• Revolving credit facility available into 2021• Rowan’s cash balance of $1.2+ billion exceeds all debt maturities through 2021

Strong Financial Position: With minimal debt maturities over the next five years, our focus can be on positioning for a recovery


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Market Dynamics


Conclusion

As oil prices recover and long-term service contracts roll off, deflated supply chain costs will make incremental investment more attractive

Macro Fundamentals Improving:

• Significant number of projects deferred in recent years; global oil demandincreasing; spare production capacity decreasing

2017 E&P Capital Spending Flat:

• Indications are that capital spending will be flat with 2016

• An increasing amount of spending will be dedicated to incrementalinvestments

Direction for next year’s E&P spending Relative share of budgets

Source: Pareto E&P Survey 2016, dated August 16, 2016


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Barclays: “Statoil recently mentioneda deepwater breakeven of $41/bblwith Shell guiding close to $45/bbl”

McKinsey: “Cost compression willcontinue to push deepwater costslower…making most deepwaterprojects economical at an oil pricebetween $50 and $60.”

Scotia Howard Weil: “While somepeers are exiting or de-emphasizingDeepwater, RDS has an attractive suiteof assets located primarily in two lowbreakeven basins (Gulf of Mexico &Brazil). Pre-FID projects have abreakeven of around $45/bbl withsome pre-salt Brazil trending below$40/bbl.”

Morgan Stanley: "$60/bbl for 6months was generally regarded aswhat was necessary to get deepwateractivity to pick up.”

Investment break-even levels for deepwater have become competitive with other options

Break-even reported for major offshore projects

Source: Pareto E&P Survey 2016, dated August 16, 2016


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Floaters: Throughout the market cycles, higher specification drilling units provide higher levels of utilization

40

60

80

100

<5,000' 5,000'-7,499' 7,500'+ / <1,250 tons 7,500'+ / 1,250+ tons

%

Includes data supplied by IHS-Petrodata, Inc; Copyright 2016, as of November 1, 2016

Worldwide Floater Total Utilization by Water Depth / Hookload

61 units

103 units87 units39 units


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

* Includes data supplied by IHS-Petrodata, Inc., Copyright 2016; and Rowan Analysis; as of August 18, 2016

64

193

101

0

50

100

150

200

250

300

350

400

Projected Future

Supply Range

190 - 240

Potential Newbuild

Cancellations

Cold Stacked Post 1996

Contracted Pre-1996

Stacked Pre 1996

Total Current Supply

358

Potential Floater Supply Attrition ?

Roll-off of Contracted Floater Fleet

Post-1996 Floaters

Pre-1996 Floaters

Floaters Under Construction

0

50

100

150

200

250

YE’

25

YE’

24

YE’

23

YE’

22

YE’

21

YE’

20

YE’

19

YE’

18

YE’

17

YE’

16

Tod

ay

YE1

5

YE1

4

YE1

3

YE1

2

YE1

1

YE1

0

YE0

9

YE0

8

YE0

7

YE0

6

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

• 29% of all floaters are older than 20 years; they currently represent 28% of working floaters

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

Post 1996 - Existing Contracts

Contracted Rig Demand

Pre 1996 - Existing Contracts


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Jack-ups: Throughout the market cycles, newer higher specification drilling units provide higher levels of utilization

* Jack-ups with two million pound or greater hookload

Includes data supplied by IHS-Petrodata, Inc; Copyright 2016 as of November 1, 2016

63 units116 units

147 units140 units

20

40

60

80

100

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

%

Worldwide Jack-up Total Utilization by Rig Class

55 units


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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

* Includes data supplied by IHS-Petrodata, Inc., Copyright 2016; and Rowan Analysis; as of 18-AUG- 2016, includes only independent leg, cantilevered units.

111

247

235

0

100

200

300

400

500

600

Cold Stacked Post 1996

Contracted Pre 1996

Stacked Pre 1996

Total Current Supply

593

Projected Future

Supply Range

325 - 375

Potential Newbuild

Cancellations

Roll-off of Contracted Jack-up Fleet

JUs Under Construction

Post-1996 Jus

Pre-1996 JUs

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

• 45% of all JUs are older than 20 years; they currently represent 46% of working JUs

• Fewer niches for older rigs to “hide” than in floater market

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

0

50

100

150

200

250

300

350

400

YE’

25

YE’

24

YE’

23

YE’

22

YE’

21

YE’

20

YE’

19

YE’

18

YE’

17

YE’

16

Tod

ay

YE1

5

YE1

4

YE1

3

YE1

2

YE1

1

YE1

0

YE0

9

YE0

8

YE0

7

YE0

6

Pre 1996 JUs - Existing Contracts

Post 1996 JUs - Existing Contracts

Contracted Rig Demand


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Market Dynamics


Conclusion

Rowan has three company priorities to deliver shareholder value

Our customers want:• Safe, reliable & efficient

operations• Procedural discipline and

management of operational risk• Solid counterparties

Our shareholders want:• Thoughtful capital allocation to

drive strong returns• Exposure to a driller with a

sustainable capital structure

Our employees want:• To be part of a winning team• Some stability in a rough market• A company willing to develop and

challenge them


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Rowan is taking advantage of this downturn to make a step change in operational performance

Continuously Improving PerformanceThe way forward is a step change

• Advancing a performance program to improve drilling efficiency

• Applying LEAN philosophy to identify & eliminate waste in our onshore and offshore operations

• A dedicated analytics team to harvest data to drive performance and lower costs

Crew A Crew B Crew C Crew D

Example: Analyzing variance in performance of drilling crews in slip to slip connection time while tripping


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We are focused on improving Rowan’s return on invested capital

The improvements we are making now will deliver results in the short and long run

Control spend and capital efficiency• 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

Proactively address Organizational Health to counter negative aspects of the downturn• Visible Leadership; lead from the front on cost cutting with pay cuts of executives• Continuously assess Organizational Health; continue to develop future leaders• Create Targeted Initiatives to improve alignment, execution, and renewal of key business

processes. Engage employees in these improvement initiatives.


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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*:

• 38 % reduction of TRIR (Total Recordable Incident Rate)

• Downtime held essentially flat while delivering our final two drillships

280

135

1,145

95

700

-64%

-29%

-39%

Non-newbuild Capex

<100

SG&ADrilling Expense

Midpoint of Current Guidance for 2017

Midpoint of Initial Guidance for 2015

USD

mill

ion

sCOMPANY OVERVIEW & INVESTMENT HIGHLIGHTS MARKET DYNAMICS DELIVERING SHAREHOLDER VALUE CONCLUSION

* As of October 28, 2016

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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:

Increased Liquidity 3Q2016 – Generated $276 million of cash

during the quarter and currently have a balance in excess of $1.2 billion

Debt Reduction 4Q2015/ YTD2016 - Retired nearly $150 million

of debt that was due to mature over the next four years

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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Market Dynamics


Conclusion

Rowan is positioned to endure this challenging market and emerge a stronger company

Investment Highlights

1

2

3

4

5

Competitive differentiation in drilling demanding wells

Modern high-specification fleet strategically positioned in global markets

Experienced and proven workforce focused on performance

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

Strong & flexible financial position


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Appendix

Worldwide marketed* jack-up utilization down to 69%

* Excludes Cold Stacked / Out of Service units

Includes data supplied by IHS-Petrodata, Inc; Copyright 2016 as of October 13, 2016

Marketed Supply: 456 units

0

200

400

600

Total Fleet ColdStacked /

OOS

Warm / HotStacked /

Other

Contracted

54185

141315

Current Supply / Demand

US GOM27%

11 RigsMexico

60%

42 Rigs C&S Am55%

11 Rigs

W. Africa35%

20 Rigs

North Sea70%

46 RigsMiddle East

76%

159 Rigs

India95%

39 Rigs

SE Asia47%

59 Rigs

Australia100%

2 Rig

Mediterranean86%

14 Rigs

33

0%

1 Rig

Worldwide marketed* UDW** utilization has slipped to 75%

Marketed Supply: 130 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 2016 as of October 13, 2016

Far East25%

4 Rigs

Australia100%

1 Rigs

India100%

2 RigW. Africa

66%

29 Rigs

C&S Am87%

30 Rigs

Mexico75%

4 Rigs

USA84%

37 Rigs

E. Canada25%

4 Rigs

North Sea63%

8 Rigs

Mediterranean80%

5 Rigs SE Asia50%

8 Rigs

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APPENDIX

Rowan guidance as of November 1, 2016

Key metrics:FY 2015

Actual

3Q 2016

Actual

4Q 2016

Projected

FY 2016

Projected

FY 2017

Projected

Jack-up Operational

Downtime

(unbillable)

~1% Less than 2% ~2.5% <2% ~2.5%

Drillship Operational

Downtime (1)~7% 0% ~5% < or ~1% ~5%

Contract Drilling Expenses

(excluding rebills)$950 MM $182 MM ~$190 MM ~$775

$650 - $750 MM(2)

SG&A $116 MM $24 MM ~$26 MMSlightly below

$105MM $90 - $100 MM

Depreciation $391 MM $102 MM Not GuidedSlightly above

$400 MM$385 - $395MM

Interest Expense,

Net of Capitalized Interest$145 MM $39 MM Not Guided ~$155 MM $145 - $150MM

Effective Tax Rate

(normalized)

~11% Normalized

9.5% Not GuidedLow to Mid Single Digits

Not Guided

Capital Expenditures $723 MM $24 MM Not Guided$125 - $130

MM(2) <$100 MM(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 $650 MM and $750 MM, depending upon whether certain idle rigs secure additional work.

(3) Rowan expects 2016 maintenance capital expenditures to range from $125 - $130MM and 2017 to be less than $100 MM, excluding any contractual modifications that

may arise due to securing additional work, none of which is currently planned.35

Investor Contacts:

Chris Pitre VP, Investor Relations and Corporate [email protected]+1 713 968 6642

Carrie PratiManager, Marketing and Investor [email protected]+1 713 960 7581

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