Rowan Companies 8-K Regulation FD Disclosure

Calyon Energy

Conference

Rowan Companies, Inc.

W.H. Wells

W.C. Provine

May 2007

This report contains 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 financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company.  Among the factors that could cause actual results to differ materially are the following: oil, natural gas and other commodity prices; the level of offshore expenditures by energy companies; energy demand; the general economy, including inflation; weather conditions in the Company’s principal operating areas; and environmental and other laws and regulations.  Other relevant factors have been disclosed in the Company’s filings with the U. S. Securities and Exchange Commission.

Forward Looking Statements

Consolidated Revenues

  (In Millions)

Consolidated EBITDA

  (In Millions)

Average Jack-Up Day Rates

  (Worldwide)

Rowan Companies, Inc. – Middle East Operations

Capital Employed                              $438 million

Revenue Backlog                              $1.1 billion 

Operating Income Backlog               $665 million

Future Annualized ROCE                  58%

(ROCE Analysis)

Manufacturing Revenues

  (In Millions)

Manufacturing Backlog

Drilling

Products &
Systems

 32%

Other

 68% 

3/31/2005

Total Backlog:$87 million

Total Backlog: $462 million

3/31/2007

Drilling

Products &
Systems

 93%

Other

   7% 

Forestry & Mining

Mining Distribution

Forestry Distribution

Drilling Products Distribution

LeTourneau Technologies, Inc. – Worldwide Operations

Mining Products

Drilling Systems

Power Systems

Forestry Products

LeTourneau Technologies, Inc.

Steel Products

Offshore Products

LTI - Longview

Power Systems - Houston

LTI - Vicksburg

Drilling Systems - Houston

LeTourneau Technologies, Inc. Facilities

Rowan’s Worldwide Drilling Operations

U.S. Gulf of Mexico

9 Jack-ups

Trinidad     

1 Jack-up     

Eastern Canada

Operations Office

North Sea

3 Jack-ups

Middle East 

8 Jack-ups

Jack-up Rigs

Land Rigs

27 Land Rigs

1Q 2007 average day rate: $ 23,900

Rowan Newbuild –

Rig 60

27 Land rigs currently operating in Texas, Louisiana & Oklahoma

18 of the 27 rigs are on term contracts

Current Average Well Depth: 15,400’

Rowan’s Land Fleet

Average Day Rates

  (In Thousands)

Rowan’s Offshore Fleet – 21 Total Jack-ups

Gorilla Class

3 Rigs

14%

300-350’

116-C

7 Rigs

33%

350’

Slot

2 Rigs

10%

 

250’- 300’Slot

2 Rigs

10%

 

TARZAN

CLASS

3 Rigs

           14%

Super Gorilla

Class

4 Rigs

19%

Three additional rigs are under construction / on order

Eastern

Canada

  13%   

Middle East

5%

North Sea

29%  

U.S. Gulf of

Mexico

32%

Middle East

24%

U.S. Gulf of

Mexico

 51%

North Sea

42%

Trinidad

2%

1^st Quarter 2007

Rowan’s Worldwide Offshore Fleet

(Net Book Value per area)

Trinidad

2%

4th Quarter 2006

The Middle East and the U.S. Gulf of Mexico are the two dominant

jack-up markets that make up roughly 50% of the world fleet

Jack-up Contract Coverage

Source: Morgan Stanley / ODS-Petrodata

2007E      2008E     2009E

Offshore drillers operating internationally have longer-term contracts

C & S

America: 88%

US GOM: 66%

Mexico: 100%

West Africa: 100%

North Sea: 100%

Middle East: 96%

SE Asia: 100%

Contracted

Not Contracted

58

31

2

35

25

0

87

4

35

0

29

15

0

Current Worldwide Jack-up Supply / Demand

Worldwide Utilization: 91%

Includes data supplied by ODS-Petrodata, Inc; Copyright 2007

0

Indian Ocean: 100%

33

0

Med / Black Sea : 100%

17

0

Largest Jack-up Operators Worldwide

•

 NOCs have assumed a more dominant role in global

 jack-up demand

•

NOCs not only are economically driven, but also politically  driven – probably less cyclical

Source: ODS-Petrodata / Morgan Stanley

National Oil Companies               International Oil Companies

Worldwide Jack-up Newbuilds and Attrition 1950-2010

Additions to the Fleet

Attrition

Average Age of Retired Rigs: 20 yrs.

87% of the fleet is 20 years & older

Average Number of Retired Rigs

 per year:  6 Rigs

Scheduled Construction / On Order

66 rigs under

construction

2007 - 18

2008 - 31

 2009 - 14

2010 -  3

Includes data supplied by ODS-Petrodata, Inc; Copyright 2007

Calyon Energy

Conference  

Rowan Companies, Inc.

W.H. Wells

W.C. Provine

May 2007