Rowan Companies 8K Rowan Reports Record Quarterly Operating Results | SEC 2 Aug 07

EXHIBIT 99

News Release

Rowan Companies, Inc.

2800 Post Oak Boulevard, Suite 5450

Houston, Texas 77056 (713) 621-7800

FOR IMMEDIATE RELEASE & #160; August 2, 2007

ROWAN REPORTS RECORD QUARTERLY OPERATING RESULTS

HOUSTON, TEXAS -- For the three months ended June 30, 2007, Rowan Companies, Inc. (RDC-NYSE) generated record net income of $128.1 million, or $1.14 per share, compared to $86.4 million, or 77¢ per share, in the first quarter of 2007 and $109.7 million, or 98¢ per share, in the second quarter of 2006. Revenues were a record $507.0 million in the second quarter of 2007, compared to $462.3 million in the first quarter of 2007 and $382.9 million in the second quarter of 2006.

The second quarter 2007 results included $14.6 million, or 8¢ per share, of gains on asset sales, compared to $24.1 million, or 14¢ per share, in the first quarter of 2007 and $24.5 million, or 14¢ per share, in the second quarter of 2006. The second quarter 2007 results also included approximately $4.5 million, or 2¢ per share, of incremental loss recorded on the Company’s external rig construction project which was completed during the period.

Rowan’s drilling operations generated record revenues of $353.1 million during the second quarter of 2007, up by $64.8 million, or 22%, from the first quarter of 2007 and by $73.0 million, or 26%, from the second quarter of 2006. The Company’s income from drilling operations improved to $181.9 million, or 52% of revenues, during the second quarter of 2007, up by 45% from the first quarter of 2007 and 20% from the second quarter of 2006.

Rowan’s offshore rig utilization was 97% during the second quarter of 2007, up from 84% in the first quarter of 2007 and 93% in the second quarter of 2006. The Company’s average offshore day rate was $157,100 during the second quarter of 2007, up by $13,800, or 10%, from the first quarter of 2007 and by $13,300, or 9%, from the second quarter of 2006. Rowan’s land rig utilization was 97% during the second quarter of 2007, up from 92% in the first quarter of 2007 but down from 100% in the second quarter of 2006, though the number of rig operating days increased between periods. The Company’s average land rig day rate was $22,400 during the second quarter of 2007, down by $1,500, or 6%, from the first quarter of 2007 and unchanged from the second quarter of 2006.

Rowan’s combined manufacturing operations generated revenues of $153.9 million during the second quarter of 2007, up by $51.1 million or 50% from the second quarter of 2006 and down by $20.1 million, or 12% from the first quarter of 2007. The Company’s income from manufacturing operations improved to $13.0 million, or 8% of revenues, during the second quarter of 2007, up by 110% from the first quarter of 2007 and down by 10% from the second quarter of 2006.

Danny McNease, Chairman and Chief Executive Officer, commented, “We are proud of the continuing progress made by our manufacturing businesses in expanding product lines, growing external revenues and improving profitability. Rowan’s quarterly manufacturing operating results, for example, now exceed what were annual levels as recently as 2003, and the market acceptance for many of our innovative drilling products keeps growing. Our quote volume suggests that the multi-year growth trend in our drilling products and systems segment will continue.

“Rowan’s drilling operations have again contributed record operating results, and our contracted backlog provides significant earnings visibility beyond 2007. We believe that the overall quality of our drilling equipment and personnel, both land and offshore, have helped us to maintain our domestic fleet utilization near optimum levels and minimize the adverse impact on our day rates caused by the current instability in the North American drilling markets. Our efforts to diversify our offshore drilling operations to more lucrative international markets have yielded the dramatic increase in our profitability.

“Demand for high-specification drilling equipment in many foreign markets shows no signs of letting up. Our recent contract extension for the Gorilla V in the North Sea – through June 2009 with a near-50% increase in the day rate – is indicative of the strength of the international market for premium jack-ups. We are continuing to actively pursue growth opportunities for our drilling and manufacturing businesses in several markets abroad, while remaining focused on improving margins in our existing operations.“

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company’s stock is traded on the New York Stock Exchange. Common Stock trading symbol: RDC. Contact: William C. Provine, Vice-President - Investor Relations, 713-960-7575. Website: www.rowancompanies.com

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 include oil and natural gas 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.

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In Millions)


	JUNE 30
	2007		2006

ASSETS

Cash and cash equivalents	$	389.8	$	488.3
Accounts receivable		338.2		375.5
Inventories		407.1		263.3
Other current assets		107.5		85.4
Total current assets		1,242.6		1,212.5
Restricted cash		50.0		-
Property, plant and equipment - net		2,303.6		1,953.7
Other assets		49.9		36.2
TOTAL	$	3,646.1	$	3,202.4


LIABILITIES AND STOCKHOLDERS' EQUITY

Current maturities of long-term debt	$	64.9	$	64.9
Accounts payable		104.0		103.3
Other current liabilities		331.9		256.8
Total current liabilities		500.8		425.0
Long-term debt		452.9		517.9
Other liabilities		616.9		495.5
Stockholders' equity		2,075.5		1,764.0
TOTAL	$	3,646.1	$	3,202.4

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited (In Millions Except Per Share Amounts)



	THREE MONTHS						SIX MONTHS
	ENDED JUNE 30						ENDED JUNE 30
	2007			2006			2007			2006

REVENUES	$	507.0		$	382.9		$	969.3		$	682.7

COSTS AND EXPENSES:
Operations		274.9			200.8			579.3			373.1
Depreciation and amortization		28.9			22.0			56.5			42.1
Selling, general and administrative		22.9			18.6			45.3			39.0
Gain on sale of property and equipment		(14.6	)		(24.5	)		(38.7	)		(27.0	)
Total		312.1			216.9			642.4			427.2
INCOME FROM OPERATIONS		194.9			166.0			326.9			255.5
Net interest and other income		1.2			2.0			1.8			4.8
INCOME BEFORE INCOME TAXES		196.1			168.0			328.7			260.3
Provision for income taxes		68.0			58.3			114.2			91.5
NET INCOME	$	128.1		$	109.7		$	214.5		$	168.8

NET INCOME PER DILUTED SHARE	$	1.14		$	0.98		$	1.92		$	1.51

AVERAGE DILUTED SHARES		112.2			112.0			111.9			111.9



NOTE: See pages 6 and 7 for supplemental operating information.

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ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited (In Millions)

	SIX MONTHS
	ENDED JUNE 30
	2007			2006
CASH PROVIDED BY (USED IN):
Operations:
Net income	$	214.5		$	168.8
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		56.5			42.1
Deferred income taxes		16.6			57.2
Gain on sale of assets		(38.7	)		(27.0	)
Other - net		17.8			21.4
Net changes in current assets and liabilities		(34.8	)		(178.8	)
Net changes in other noncurrent assets and liabilities		19.2			15.0
Net cash provided by operations		251.1			98.7

Investing activities:
Property, plant and equipment additions		(221.3	)		(258.1	)
Decrease in Restricted cash balance		106.1			-
Proceeds from disposals of property, plant and equipment		43.4			34.3
Net cash used in investing activities		(71.8	)		(223.8	)

Financing activities:
Repayments of borrowings		(32.5	)		(32.5	)
Payment of cash dividends		(22.1	)		(38.5	)
Proceeds from equity compensation plans and other		7.1			8.5
Net cash used in financing activities		(47.5	)		(62.5	)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		131.8			(187.6	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		258.0			675.9
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	389.8		$	488.3

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ROWAN COMPANIES, INC.
SUPPLEMENTAL DRILLING INFORMATION
Unaudited (dollars in millions, except where otherwise indicated )


	THREE MONTHS ENDED
	June 30, 2007						March 31, 2007						June 30, 2006
	$			*% Revenues*			$			% Revenues			$			% Revenues

DRILLING OPERATIONS (a):
Revenues	$	353.1			100		$	288.3			100		$	280.1			100
Operating costs		(144.6	)		(41	)		(146.8	)		(51	)		(119.7	)		(43	)
Depreciation and amortization expense		(25.3	)		(7	)		(24.1	)		(8	)		(18.6	)		(7	)
Selling, general and administrative expenses (b)		(16.0	)		(5	)		(15.7	)		(5	)		(13.9	)		(5	)
Gain on sale of property and equipment		14.7			4			24.1			8			23.7			8
Income from operations	$	181.9			52		$	125.8			44		$	151.6			54

OFFSHORE RIG DAYS:
Operating		1,848						1,587						1,605
Available		1,911						1,890						1,729
Utilization		97	%					84	%					93	%

LAND RIG DAYS:
Operating		2,377						2,154						1,560
Available		2,457						2,352						1,561
Utilization		97	%					92	%					100	%

AVERAGE DAY RATES (in thousands):
Gulf of Mexico rigs	$	123.8					$	127.7					$	143.3
Middle East rigs		153.0						132.4						114.1
North Sea rigs		249.5						213.4						167.2
All offshore rigs		157.1						143.3						143.8
Land rigs		22.4						23.9						22.4


(a) Amounts exclude effects of intercompany transactions.
(b) Amounts include corporate SG&A costs that are allocated between operating segments.

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ROWAN COMPANIES, INC.
SUPPLEMENTAL MANUFACTURING INFORMATION
Unaudited (dollars in millions)


	THREE MONTHS ENDED
	June 30, 2007						March 31, 2007						June 30, 2006
	$			*% Revenues*			$			% Revenues			$			% Revenues
MANUFACTURING OPERATIONS (a):
Revenues	$	153.9			100		$	174.0			100		$	102.8			100
Direct cost of sales		(122.3	)		(79	)		(148.7	)		(85	)		(74.7	)		(73	)
Other operating costs		(8.0	)		(5	)		(8.9	)		(5	)		(6.4	)		(6	)
Depreciation and amortization expense		(3.6	)		(2	)		(3.5	)		(2	)		(3.4	)		(3	)
Selling, general and administrative expenses (b)		(6.9	)		(4	)		(6.7	)		(4	)		(4.7	)		(5	)
Gain (loss) on sale of property and equipment		(0.1	)		(0	)		-			-			0.8			1
Income from operations	$	13.0			8		$	6.2			4		$	14.4			14


REVENUES (a):
Drilling Products and Systems:
Offshore Products	$	46.5			30		$	67.1			39		$	40.0			39
Drilling Systems		57.9			38			35.6			20			9.7			9
Power Systems		8.2			5			17.4			10			3.4			3
Mining, Forestry and Steel Products		41.3			27			53.9			31			49.7			49
Total	$	153.9			100		$	174.0			100		$	102.8			100


MANUFACTURING BACKLOG:
Drilling Products and Systems:
Offshore Products	$	166.4					$	209.0					$	330.1
Drilling Systems		138.9						192.3						138.8
Power Systems		23.5						25.9						36.5
Mining, Forestry and Steel Products		36.6						34.3						61.2
Total	$	365.4					$	461.5					$	566.6

(a) Amounts exclude effects of intercompany transactions.
(b) Amounts include corporate SG&A costs that are allocated between operating segments.

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Rowan Companies Inactive 8-KRowan Reports Record Quarterly Operating Results