Presentation

Rowan Companies, Inc.

D.F. McNease

Chairman & CEO

January 2007

Pritchard Capital Partners

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

Operations and Backlog

YTD YTD

9/30/06 9/30/05

($ in millions)

External revenues $313.0 $191.1

Margin* (% of revenues) $72.1 (23%) $42.9 (22%)

Operating income** (% of revenues) $28.7 (9%) 0.9 (1%)

External backlog $578.1 $321.7

Internal volume to Rowan $164.1 $80.5

* 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

Drilling Division

As of September 30, 2006, the Drilling Division has a backlog of

approximately $1.9 billion based on long term contracts for 13 rigs

Manufacturing Division

Forestry & Mining

Forestry Distribution

Mining Distribution

Drilling Products Distribution

LeTourneau Technologies, Inc. – Worldwide Operations

LeTourneau, Inc. - Longview

OEM - Houston

LeTourneau, Inc. - Vicksburg

LEWCO - Houston

LeTourneau Technologies, Inc. Facilities

Rig 54

25 Land rigs currently

operating in

Texas, Louisiana & Oklahoma

22 out of the 24 rigs are

on term contracts

Current average day rate:

$ 23,125

4 newbuilds are under construction

3 of the 4 rigs are contracted for terms

of two to three years with day rates at
approximately $27,500

Rowan’s Land Fleet

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%

The Hank Boswell, Rowan’s 3^rd TARZAN Class jack-up,

was christened into service on September 23, 2006.

Three additional rigs are under construction / on order.

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

25 Land Rigs

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 5%

Middle East

4 Rigs

19%

North Sea

2 Rigs

Current average day rate worldwide: $154,000

U.S. Gulf of

Mexico

9 Rigs

43%

Middle East

8 Rigs

38%

U.S. Gulf of

Mexico

13 Rigs

62%

North Sea

3 Rigs

14%

Trinidad

1 Rig

4th Quarter 2006

1^st Quarter 2007

(Number of rigs per area)

Trinidad

1 Rig

Eastern

Canada

13%

Middle East

North Sea

29%

U.S. Gulf of

Mexico

32%

Middle East

24%

U.S. Gulf of

Mexico

51%

North Sea

42%

Trinidad

1^st Quarter 2007

Rowan’s Worldwide Offshore Fleet

(Net Book Value per area)

Trinidad

4th Quarter 2006

Rowan Companies, Inc. - ROI Analysis

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

Estimated ROI – after taxes 20%

4 year cash flow – after taxes $241 million

Saudi Aramco Contract: 2 TARZAN Rigs - 4 year period

Worldwide Jack-ups: Contracted Time and Average Dayrates

Contractor Total Jack-ups % Time Cont. Avg. Dayrate % Time Avg. Dayrate % Time Avg. Dayrate

Rowan 21 65% $173,303 50% $167,554 23% $167,616

A 43 76% $150,537 55% $165,929 22% $168,719

B 41 66% $138,578 38% $131,050 25% $133,398

C 24 88% $112,515 49% $134,314 29% $140,786

D 41 82% $115,111 35% $124,795 15% $131,535

E 27 52% $93,677 19% $97,340 11% $105,387

World 321 69% $125,358 40% $137,218 22% $129,037

2007

2008

2009

Middle East Jack-up Market Share – Main Contractors

Year End Jack-up Demand Comparison

Source: RigZone

Date % Time Contracted Average Dayrate

for next year for next year

Dec. 2006 (for ’07) 69% $125,358

Dec. 2005 (for ’06) 51% $ 78,796

Dec. 2004 (for ’05) 41% $ 52,844

Rowan’s CAPEX vs. Cash Flow

For the 21 months ended 9/30/2006

(In millions)

Cash Flow $583

Capital Expenditures:

Drilling ($530)

Manufacturing ($55)

Total CAPEX ($585)

CAPEX exceeds Cash Flow by ($2)

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

E. Canada: 100%

C & S

America: 83%

US GOM: 82%

Mexico: 96%

West Africa: 100%

North Sea: 1

00%

Middle East: 97%

SE Asia: 97%

Contracted

Not Contracted

Current Worldwide Jack-up Supply / Demand

Worldwide Utilization: 93%

Indian Ocean: 100%

Worldwide: Jack-up Supply Deficits

Southeast Asia 4 - 6 rigs

India 3 - 4 rigs

West Africa 3 - 4 rigs

Mexico 3 - 4 rigs

Middle East 5 - 6 rigs

North Sea 2 - 3 rigs

Trinidad 1 rig

Mediterranean 2 rigs

Total Rig Deficit23 - 30 Jack-ups

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

64 rigs under

construction

2007 - 21

2008 - 30

2009 - 12

2010 - 1

•

Mediterranean – 1-2 rigs (250’IC / 300’IC)

•

Mexico – 2-3 rigs (250’IC/300’IC)

•

West Africa – 2 rigs (350’IC)

•

North Sea – 2 rigs (350’+IC)

•

Middle East – 4-5 rigs (300’IC/350’IC)

•

India – 1-2 rigs (300’IC)

•

Trinidad – 1 rig (350’IC)

•

Total Projected Migration – 13-17 rigs

• There are still 9 cold stacked jack-up

rigs further decreasing the active fleet to 64

• Considering a pre-storm demand of 92 rigs, there could be a 28 rig deficit in the the US GOM

December 2007

U.S Gulf of Mexico

Projected Rig Make-up

73 Total Jack-ups

(64 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

8 Rigs

11%

<250’ IC

5 Rigs

200’-250’ MS

17 Rigs

23%

200’-250’ MC

15 Rigs

21%

<200’ MC

15 Rigs

20%

5 Rigs

>350’ IC

3 Rigs