Presentation

Rowan Companies, Inc.

D.F. McNease

Chairman & CEO

September 2006

Lehman Brothers Energy / Power Conference

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

Rowan Companies, Inc. Revenues

Drilling

73%

Manufacturing

27%

Drilling

70%

Manufacturing

30%

2005

2006 Estimate

LeTourneau, Inc. Revenues and Backlog

YTD YTD

6/30/06 6/30/05

($ in millions)

External revenues $185.5 $124.0

Margin* (% of revenues) $39.0 (21%) $15.6 (13%)

Operating income** (% of revenues) 24.3 (13%) 0.9 (1%)

External backlog $566.5 $251.9

Internal volume to Rowan 117.7 45.6

* Equals external revenues less direct cost of sales

** Equals margin less SG&A, Engineering and R&D, which are allocated among groups after the margin line but before operating income, plus gain (loss) on sale of fixed assets

LeTourneau, Inc. - Longview

OEM - Houston

LeTourneau, Inc. - Vicksburg

Manufacturing Facilities

LEWCO - Houston

AC DirectDrive Top Drive

3,000 HP Mud Pump

Rotary Table

Traveling Block

AC Traction Motors

Motor Drives and Controls

Rowan’s Offshore Fleet – 20 Total Jack-ups

Gorilla Class

3 Rigs 15%

300-350’

116-C

7 Rigs
35%

350’

Slot

2 Rigs
10%

Slot

2 Rigs
10%

250’-300’

TARZAN

CLASS

2 Rigs

10%

Super Gorilla

Class
4 Rigs
20%

The Hank Boswell, Rowan’s 3^rd TARZAN Class jack-up, will be christened into service on September 23, 2006. Three additional rigs are under construction / on order

Rowan’s Safety Statistics: Offshore and Land Drilling

TRIR Rate

LTI Rate

Rowan accident rate based on 200,000 man-hours

Rowan’s Worldwide Offshore Fleet

Eastern

Canada

1 Rig

Middle East

4 Rigs
20%

North Sea

2 Rigs
10%

Current average day rate worldwide: $150,000

Current average day rate U.S. Gulf of Mexico: $155,000

U.S. Gulf

Mexico
9 Rigs
43%

8 Rigs
38%

Middle East

U.S. Gulf of

Mexico

13 Rigs
65%

North Sea

Trinidad

3 Rigs
14%

1 Rig
5%

August 2006

1^st Quarter 2007

(Number of rigs per area)

Eastern

Canada
15%

Middle East

North Sea

31%

U.S. Gulf of

Mexico
32%

Middle East

24%

U.S. Gulf of

Mexico
49%

North Sea

42%

Trinidad

August 2006

1^st Quarter 2007

Rowan’s Worldwide Offshore Fleet

(Net Book Value per area)

Rowan’s Offshore Drilling NBV by Class

Gorilla /

Super Gorilla

63%

TARZAN

Class

26%

300’-350’

Cantilever
7%

250’, 30

Slot 4%

0’-350’

21 Total Jack-up Rigs

(includes Hank Boswell)

Rowan Companies, Inc. - ROI Analysis

4 year income – after taxes (35%) $203 million

Estimated ROI – after taxes 20%

4 year cash flow – after taxes $241 million

Saudi Aramco Contract: 2 TARZAN Rigs - 4 year period

Rowan’s CAPEX vs. Cash Flow

For the 18 months ended 6/30/2006

(In millions)

Cash Flow $480

Capital Expenditures:

Drilling ($445)

Manufacturing ($46)

Total CAPEX ($491)

CAPEX exceeds Cash Flow by ($11)

*Cash Flow is Rowan's actual increase in cash, excluding additions to PP&E

Rig 54

20 Land rigs currently

operating in

Texas, Louisiana & Oklahoma

17 out of the 20 rigs are

on term contracts

Current average day rate:

$23,400

9 Newbuilds are under construction

8 of the 9 rigs are contracted for

terms of 2-3 years with day rates
ranging from $21,000 - $27,500

Rowan’s Land Fleet

E. Canada: 100%

C & S

America: 82%

US GOM: 80%

Mexico: 100%

West Africa: 100%

North Sea: 100%

Middle East: 98%

SE Asia: 97%

Contracted

Not Contracted

Current Worldwide Jack-up Supply / Demand

Worldwide Utilization: 92%

Indian Ocean: 100%

Worldwide: Jack-up Supply Deficits

Southeast Asia 4 - 5 rigs

India 2 - 3 rigs

West Africa 2 - 3 rigs

Mexico 3 rigs

U.S. GOM We believe the U.S. GOM jack-up deficit

will return after hurricane season

Middle East 4 - 5 rigs

North Sea 2 - 3 rigs

Trinidad 1 rig

Total Rig Deficit 18 - 23 Jack-ups

Worldwide Jack-up Tenders

Middle East

Maersk 1 rig Currently Tendering

3 rigs September

Saudi Aramco 1 - 2 116C Currently Tendering

2 Deep Gas rigs Awarded (Rowan)

4 rigs November 2006

RasGas 1 rig Currently Tendering

2 rigs October 2006

National Drilling 2 rigs Currently Tendering

3 rigs 2008

Oxy 1-2 rigs Currently Tendering

Mexico

PEMEX 2 300’IC Currently Tendering

1 250’IC Currently Tendering

India

ONGC 5 rigs Currently Tendering

GSPC 1 rig Currently Tendering

West Africa

ExxonMobil 3 - 4 rig deficit

Chevron Texaco 1 - 2 rigs Currently Tendering

Cabinda Gulf 1 rig Currently Tendering

Trinidad

Petro-Canada 1 rig Awarded (Rowan)

British Gas 1 rig 1^st Quarter 2007

Worldwide Jack-up Newbuilds and Attrition 1950-2009

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

59 rigs under construction

2006 - 4

2007 – 21

2008 - 26

2009 - 8

350’ IC

14 Rigs

10%

300’ IC

24 Rigs

17%

250’ IC

22 Rigs

15%

<250’ IC

7 Rigs

200’-250’ MS

19 Rigs

13%

200’-250’ MC

23 Rigs

16%

<200’ MC

14 Rigs

10%

8 Rigs

>350’ IC

12 Rigs

2001

2006

143 Jack-ups

100 Jack-ups

350’ IC

10 Rigs

10%

300’ IC

11 Rigs

11%

250’ IC

13 Rigs

13%

<250’ IC

5 Rigs

200’-250’ MS

18 Rigs

18%

200’-250’ MC

15 Rigs

15%

<200’ MC

15 Rigs

15%

5 Rigs

>350’ IC

8 Rigs

U.S. Gulf of Mexico Jack-up Market

Loss of:

33 Independent Cantilevers

(21 of those are 300'+)

3 Independent Slots

7 Mat Cantilevers

September 2006 100

Contracted Migration - 15

1Q 2007 85

(assuming no other rigs migrate)

Cold Stacked Rigs - 8

Gulf of Mexico Jack-ups

Rig Count Timeline

1^st Quarter 2007 Active Jack-up Fleet – 77 Rigs

Pre-Storm Jack-up Demand (Summer 2005) – 92 Rigs

15 Jack-up Rig Deficit

Gulf of Mexico Jack-ups

Migration Factors

We believe migration will continue due to:

•

Global rig demand

•

International supply deficits

•

Longer-term contracts abroad

•

Higher day rates internationally

Unless U.S. E&P companies begin to offer the same incentives domestically, the U.S. Gulf of Mexico could see an additional departure of 11-15 rigs by December 2007

•

Mexico – 2-3 rigs (250’IC/300’IC)

•

West Africa – 2 rigs (350’IC)

•

North Sea – 2 rigs (350’+IC)

•

Middle East – 3-5 rigs (300’IC/350’IC)

•

India –

•	Considering a pre-storm demand of 92 rigs, there could be a 26 rig deficit in the US GOM

2-3 rigs (300’IC)

•

Total Projected Migration – 11-15 rigs

•

There are still 8 cold stacked jack-up rigs further

decreasing the active fleet to 66

December 2007

U.S Gulf of Mexico
Projected Rig Make-up
74 Total Jack-ups

(66 Total Active Jack-ups)

December 2007

U.S Gulf of Mexico
Projected Rig Make-up
74 Total Jack-ups

(66 Total Active Jack-ups)

Gulf of Mexico Jack-ups

Projected Rig Make-up
December 2007

350’ IC

5 Rigs

300’ IC

0 Rigs

250’ IC

9 Rigs

12%

<250’ IC

5 Rigs

200’-250’ MS

16 Rigs

22%

200’-250’ MC

15 Rigs

20%

<200’ MC

15 Rigs

20%

5 Rigs

>350’ IC

4 Rigs

Gulf of Mexico Jack-up Market

Historical Demand

Current Active Supply

Projected Post-Migration Supply

Pre-Storm Demand

26 Rig

Deficit

The projected post-migration supply could

descend below historical trough cycle demand

Current Active Supply

Projected Post-Migration Supply

Rowan Companies, Inc.