27 mar-17 rdc investor-presentation

Rowan Strong: Safe. Reliable. Efficient.
March 27, 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
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.
2

Company Overview & Investment Highlights
Market Dynamics
Delivering Value

Rowan has evolved into a pure play, high-specification offshore driller
4
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 1Q 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 creates 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
creates long-term growth
6

7
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

8
 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:
9

High-Specification: Rowan has a leading position in high-spec jack-ups
10

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 March 24, 2017.
High-Specification: Rowan has a leading position in high-spec jack-ups
11

High-Specification: Rowan’s ultra-deepwater drillships are best-in-class3
12

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
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-class
13
* 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 1Q 2017

$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
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 March 24, 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 .
14
7.875% 4.875% 4.750% 7.375% 5.400% 5.850%

16
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; utilization graph as of March 24, 2017.
Roll-off of Contracted Floater Fleet
0
50
100
150
200
250
YE’25
YE’17
YE08
YE07
YE13
YE’16
YE’18
YE’19
YE06
YE09
YE’22
YE’20
YE14
YE10
YE12
YE15
YE’23
YE11
YE’24
YE’21
• 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”
17
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 (%)
62 units
103 units
80 units
35 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
18
Roll-off of Contracted Jack-up Fleet
0
50
100
150
200
250
300
350
400
YE’25
YE’19
YE’18
YE15
YE14
YE’24
YE’23
YE13
YE12
YE11
YE10
YE09
YE08
YE07
YE06
YE’22
YE’21
YE’20
YE’17
YE’16
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; utilization graph as of March 24, 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
136 units
55 units

Repeatable excellence: We are systematically driving performance
across the company
20
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
21

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%
APPENDIX

Worldwide marketed* jack-up utilization is 70%
* Excludes Cold Stacked / Out of Service units
Includes data supplied by IHS-Petrodata, Inc; Copyright 2017 as of March 24, 2017
Marketed Supply: 450 units
US GOM
60%
10 Rigs
Mexico
59%
44 Rigs C&S Am
64%
11 Rigs
W. Africa
67%
12 Rigs
North Sea
65%
46 Rigs
Middle East
72%
162 Rigs
India
88%
41 Rigs
SE Asia
58%
55 Rigs
Australia
100%
1 Rig
Mediterranean
80%
15 Rigs
24
APPENDIX

0%
1 Rig
Worldwide marketed* UDW** utilization is 74%
Marketed Supply: 127 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 March 24, 2017
Far East
50%
4 Rigs
W. Africa
68%
28 Rigs
C&S Am
88%
33 Rigs
Mexico
75%
4 Rigs
USA
70%
33 Rigs
E. Canada
100%
1 Rigs
North Sea
86%
7 Rigs
Mediterranean
80%
5 Rigs SE Asia
55%
11 Rigs
25
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&ADrilling Expense
Midpoint of Current Guidance for 2017
Midpoint of Initial Guidance for 2015
USDmillions
* As of February 24, 2017; some portion of Drilling Expense reduction is due to the formation of the new drilling company with Saudi Aramco
26
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
chris.pitre@rowancompanies.com
+1 713 968 6642
Carrie Prati
Manager, Marketing and Investor Relations
carrie.prati@rowancompanies.com
+1 713 960 7581
28

27 mar-17 rdc investor-presentation

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