14 feb-17 rdc investor-presentation - final

Rowan Strong: Safe. Reliable. Efficient.
February 14, 2017
1

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.
2

Company Overview & Investment Highlights
Market Dynamics
Delivering Value
Conclusion

Rowan has evolved into a pure play, high-specification offshore driller
4
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS MARKET DYNAMICS DELIVERING VALUE CONCLUSION

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 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
1
2
3
4
5
Groundbreaking partnership with Saudi
Aramco ensures long-term growth
Competitive differentiation in drilling
demanding wells
Modern high-specificationfleet
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 position6
5

Groundbreaking partnership with Saudi Aramco
ensures long-term growth1
6

ensures long-term growth
Global drilling experience,
best-in-class performance
and technical expertise
World Class
Drilling
Expertise
Acquire Saudi built rigs and
support the training and
development of a local
drilling workforce
Partnership
in Local
Development
Demand
Certainty
Through a long-term
relationship with Saudi Aramco
Scale &
Growth
Benefit from economies of
scale by providing Saudi
Aramco with a significant
portion of its rig requirements
RowanSaudi Aramco
New Company
The new company benefits from the partners’ unique contributions
1
7

Key details (1 of 2)
Scope
 Rowan and Saudi Aramco will form a 50/50 joint venture to own and operate jack-up
drilling rigs in Saudi Arabia.
 In 2017, Rowan contributes the Gilbert Rowe, the Bob Keller, and the J.P. Bussell, related
inventory and local shorebase operations; Saudi Aramco contributes two rigs, 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 manage Rowan’s existing rigs until current contracts expire,
when the new company will lease the rigs from Rowan as needed.
Rig
Contributions
and Matching
Contributions
Cash Capital
Contributions
 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).
Financials and
Expected
Returns
 Both partners are committed to progressively implementing efficiencies and optimizing
costs to improve profitability over time.
 Expected returns are commensurate to Rowan’s target for similar risk profile
opportunities.
1
8

Newbuild
Strategy
Management  Rowan will nominate CEO and head of operations; Saudi Aramco will nominate
Chairman and CFO.
Governance
 Saudi Aramco and Rowan will each own 50%, with proportional voting rights and Board
representation.
 The new company will operate independently with a separate dedicated management
team, ensuring an arm’s length relationship.
 The new company plans to order up to 20 rigs to be delivered over ten years beginning
as early as 2021 to meet base load offshore drilling demand in the Kingdom.
 Rig purchases will be supported by contracts from Saudi Aramco as customer, at defined
returns commensurate to similar risk profile opportunities.
Key details (2 of 2)1
9

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:
2
10

Global: Rowan’s fleet is strategically positioned in key markets
• 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
4*
Premium
Jack-ups
* Gorilla II and Gorilla III were sold in 2016; excludes two cold stacked older rigs (Cecil Provine and Rowan California)
3
11

High-Specification: Rowan has a leading position in high-spec jack-ups
3
12

0
2
4
6
8
10
12
14
16
18
20
19Rowan 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-ups3
13

High-Specification: Rowan’s ultra-deepwater drillships are best-in-class3
14

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 compliance
Few rigs possess the specifications required for today’s
demanding wells and tightening regulations
13
105
16 32
166
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-class3
15
* 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.

 94-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
4 Proven: Rowan has an experienced workforce and established processes
16

Backlog Diversified: Rowan has solid backlog with diversity of
customers, geographic regions, and asset types5
Total backlog of $1.7B* that
extends to 2024
* Backlog as of February 14, 2017; does not reflect the impact from joint venture anticipated to commence operations in 2Q 2017
52%
30%
11%
5%
1% 1%
Middle East Deepwater Norway Trinidad UK US GOM
Majors /
Independents
46%
NOCs
54%
Over 85% 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
17

$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
USDMillions
Revolver Due
Purchased via Tender**
Purchased in Open Market
Current Bond Debt
6
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
18
7.875% 4.875% 4.750% 7.375% 5.400% 5.850%

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 OnshoreGlobal Overall
Drilling & Completion Budget Forecasts*
* Source: Wells Fargo Securities, January 11, 2017
2017 est. +7% 2017 est. +55% 2017 est. -9%

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 2017, as of February 13, 2017
Worldwide Floater Total Utilization by Water Depth / Hookload
61 units
103 units
83 units
36 units
21

* Includes data supplied by IHS-Petrodata, Inc., Copyright 2017; and Rowan Analysis; as of January 4, 2017
50
192
94
0
50
100
150
200
250
300
350
Projected
Future
Supply Range
190 - 240
Potential
Newbuild
Cancellations
Cold Stacked
Post 1996
Contracted
Pre-1996
Stacked
Pre 1996
Total Current
Supply
336
Potential Floater Supply Attrition ?
Roll-off of Contracted Floater Fleet
Floaters Under Construction
Fleet Post-1996 Floaters
Fleet Pre-1996 Floaters
0
50
100
150
200
250
YE’25
YE’24
YE’23
YE’22
YE’21
YE07
YE06
YE’16
YE15
YE14
YE13
YE’20
YE’19
YE’18
YE’17
YE12
YE11
YE10
YE09
YE08
• 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 will favor
modern rigs; older rigs will
be much less competitive,
unless they have a “niche”
22
Fleet Pre 1996 - Existing Contracts
Fleet Post 1996 - Existing Contracts
Contracted Rig Demand (Estimated)
Contracted Rig Demand (Actual)
A
Floaters: In 2017, there is a substantial roll off of the current floater
contracts; we believe this will force attrition of remaining older rigs

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 2017 as of February 13, 2017
64 units
117 units
147 units
139 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
23

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
• 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
24
104
254
233
0
100
200
300
400
500
600
Projected
Future
Supply Range
350 - 425
Potential
Newbuild
Cancellations
Cold Stacked
Post 1996
Contracted
Pre 1996
Stacked
Pre 1996
Total Current
Supply
591
Roll-off of Contracted Jack-up Fleet
JUs Under Construction
Post-1996 Jus
Pre-1996 JUs
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
YE15
YE14
YE13
YE12
YE11
YE10
YE09
YE08
YE07
YE06
Contracted Rig Demand (Actual)
Pre 1996 JUs - Existing Contracts
Post 1996 JUs - Existing Contracts
Contracted Rig Demand (Estimated)
* Includes data supplied by IHS-Petrodata, Inc., Copyright 2017; and Rowan Analysis; as of January 4, 2017

Rowan has three company priorities to deliver value
Our customers want:
• Safe, reliable & efficient
operations
• Procedural discipline and
management of operational risk
• Solid counterparties
Our investors 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
26

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 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
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.
27

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 $1.1 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
28

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
650
-64%
-29%
-43%
Non-newbuild
Capex
<100
SG&ADrilling Expense
Midpoint of Current Guidance for 2017
Midpoint of Initial Guidance for 2015
USDmillions
* As of November 28, 2016; some portion of Drilling Expense reduction is due to the formation of the new drilling company with Saudi Aramco
29

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
30

Rowan is positioned to endure this challenging market
and emerge a stronger company
Investment Highlights
1
2
3
4
5
Groundbreaking partnership with Saudi
Aramco ensures long-term growth
Competitive differentiation in drilling
demanding wells
Modern high-specificationfleet
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 position6
32

Worldwide marketed* jack-up utilization down to 68%
* Excludes Cold Stacked / Out of Service units
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
34

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’+
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
35

APPENDIX
Rowan guidance as of November 28, 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
$600 - $700
MM(2)
SG&A $116 MM $24 MM ~$26 MM
Slightly below
$105MM
$90 - $100 MM
Depreciation $391 MM $102 MM Not Guided
Slightly 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 Guided
Low 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 $600 MM and $700 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.
36

Investor Contacts:
Chris Pitre
VP, Investor Relations and Corporate Development
chris.pitre@rowancompanies.com
+1 713 968 6642
Carrie Prati
Manager, Marketing and Investor Relations
carrie.prati@rowancompanies.com
+1 713 960 7581
37

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