NOTE 15 – GUARANTEES OF REGISTERED SECURITIES

On May 4, 2012, the effective date of the Company's redomestication (the "redomestication date"), Rowan UK and its 100%-owned subsidiary, Rowan Delaware, entered into the third supplemental indenture to the indenture dated as of July 21, 2009, as amended and supplemented, among Rowan UK, Rowan Delaware and U.S. Bank National Association, as trustee, providing for, among other things, the full, unconditional and irrevocable guarantee by Rowan UK of the prompt payment, when due, of any amount owed by Rowan Delaware under its 5% Senior Notes due 2017 and 7.875% Senior Notes due 2019.

On May 21, 2012, Rowan UK and Rowan Delaware entered into the fourth supplemental indenture to the indenture dated as of July 21, 2009, as amended and supplemented, among Rowan UK, Rowan Delaware and U.S. Bank National Association, as trustee, providing for, among other things, the full, unconditional and irrevocable guarantee by Rowan UK of the prompt payment, when due, of any amount owed by Rowan Delaware under its 4.875% Senior Notes due 2022.

On December 11, 2012, Rowan UK and Rowan Delaware entered into the fifth supplemental indenture to the indenture dated as of July 21, 2009, as amended and supplemented, among Rowan UK, Rowan Delaware and U.S. Bank National Association, as trustee, providing for, among other things, the full, unconditional and irrevocable guarantee by Rowan UK of the prompt payment, when due, of any amount owed by Rowan Delaware under its 5.4% Senior Notes due 2042 (Rowan Delaware's 5% Senior Notes due 2017, 7.875% Senior Notes due 2019, 4.875% Senior Notes due 2022 and 5.4% Senior Notes due 2042 together, the "Senior Notes").

The following condensed consolidating financial information is presented on the equity method of accounting in accordance with Rule 3-10 of Regulation S-X in connection with Rowan UK's guarantee of the Senior Notes.

Prior to the redomestication, Rowan Delaware was the parent of the Rowan group of companies, including Rowan UK, which was formed in November 2011. Effective on the redomestication date, Rowan UK became the parent and guarantor of Rowan Delaware's Senior Notes that were outstanding at the time. In accordance with the accounting guidance for a merger of entities under common control, the financial information which follows is presented as though Rowan UK were the parent of the Rowan group of companies for all periods presented.

Financial information for 2011 has been recast for the effects of an internal reorganization in 2012.

Rowan Companies plc and Subsidiaries
Condensed Consolidating Balance Sheets
December 31, 2012
(in thousands)


	Rowan UK (Parent)		Rowan Delaware (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

CURRENT ASSETS:
Cash and cash equivalents	$	58,628	$	228,085	$	737,295	$	-		$	1,024,008
Receivables - trade and other		107		95,386		328,346		-			423,839
Other current assets		293		46,614		34,842		-			81,749
Assets of discontinued operations		-		22,954		-		-			22,954
Total current assets		59,028		393,039		1,100,483		-			1,552,550

Property, plant and equipment - gross		-		1,311,987		6,349,106		-			7,661,093
Less accumulated depreciation and amortization		-		487,147		1,102,217		-			1,589,364
Property, plant and equipment - net		-		824,840		5,246,889		-			6,071,729

Investments in subsidiaries		4,562,016		1,355,968		-		(5,917,984	)		-
Due from affiliates		-		4,407,283		508,205		(4,915,488	)		-
Other assets		-		37,787		37,421		-			75,208

	$	4,621,044	$	7,018,917	$	6,892,998	$	(10,833,472	)	$	7,699,487

CURRENT LIABILITIES:
Accounts payable - trade	$	1,277	$	23,210	$	58,517	$	-		$	83,004
Deferred revenues		-		-		52,340		-			52,340
Accrued liabilities		-		73,443		64,052		-			137,495
Liabilities of discontinued operations		-		21,255		-		-			21,255
Total current liabilities		1,277		117,908		174,909		-			294,094

Long-term debt - less current maturities		-		2,009,598		-		-			2,009,598
Due to affiliates		88,043		-		4,827,445		(4,915,488	)		-
Other liabilities		-		323,778		66,421		-			390,199
Deferred income taxes - net		-		122,814		351,058		-			473,872
Shareholders' equity		4,531,724		4,444,819		1,473,165		(5,917,984	)		4,531,724

	$	4,621,044	$	7,018,917	$	6,892,998	$	(10,833,472	)	$	7,699,487

Rowan Companies plc and Subsidiaries
Condensed Consolidating Balance Sheets
December 31, 2011


	Rowan UK (Parent)		Rowan Delaware (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

CURRENT ASSETS:
Cash and cash equivalents	$	21,472	$	184,677	$	232,704	$	-		$	438,853
Receivables - trade and other		-		33,380		250,212		-			283,592
Other current assets		-		46,137		25,472		-			71,609
Assets of discontinued operations		-		27,661		-		-			27,661
Total current assets		21,472		291,855		508,388		-			821,715

Property, plant and equipment - gross		-		1,290,526		5,738,796		-			7,029,322
Less accumulated depreciation and amortization		-		441,949		908,660		-			1,350,609
Property, plant and equipment - net		-		848,577		4,830,136		-			5,678,713

Investments in subsidiaries		4,306,396		1,101,982		-		(5,408,378	)		-
Due from affiliates		-		3,725,870		339,975		(4,065,845	)		-
Other assets		-		30,581		66,836		-			97,417

	$	4,327,868	$	5,998,865	$	5,745,335	$	(9,474,223	)	$	6,597,845

CURRENT LIABILITIES:
Current maturities of long-term debt	$	-	$	22,464	$	22,559	$	-		$	45,023
Accounts payable - trade		730		43,091		67,261		-			111,082
Deferred revenues		-		-		36,220		-			36,220
Accrued liabilities		-		102,785		28,256		-			131,041
Liabilities of discontinued operations		-		25,005		-		-			25,005
Total current liabilities		730		193,345		154,296		-			348,371

Long-term debt - less current maturities		-		1,073,887		15,448		-			1,089,335
Due to affiliates		1,151		-		4,064,694		(4,065,845	)		-
Other liabilities		-		303,117		54,592		-			357,709
Deferred income taxes - net		-		128,738		347,705		-			476,443
Shareholders' equity		4,325,987		4,299,778		1,108,600		(5,408,378	)		4,325,987

	$	4,327,868	$	5,998,865	$	5,745,335	$	(9,474,223	)	$	6,597,845

Rowan Companies plc and Subsidiaries
Condensed Consolidating Income Statements
Year ended December 31, 2012
(in thousands)


	Rowan UK (Parent)			Rowan Delaware (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	-		$	133,346		$	1,362,955		$	(103,694	)	$	1,392,607

COSTS AND EXPENSES:
Direct operating costs (excluding items below)		-			35,057			820,810			(103,694	)		752,173
Depreciation and amortization		-			50,377			197,523			-			247,900
Selling, general and administrative		17,508			14,686			67,518			-			99,712
Loss (gain) on disposals of property and equipment		-			(572	)		(1,930	)		-			(2,502	)
Material charges and other operating expenses		13,835			14,476			11,961			-			40,272
Total costs and expenses		31,343			114,024			1,095,882			(103,694	)		1,137,555

INCOME (LOSS) FROM OPERATIONS		(31,343	)		19,322			267,073			-			255,052

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized		-			(50,513	)		(279	)		75			(50,717	)
Interest income		74			362			384			(75	)		745
Loss on debt extinguishment		-			(21,603	)		(620	)		-			(22,223	)
Other - net		4,920			(5,065	)		758			-			613
Total other income (expense) - net		4,994			(76,819	)		243			-			(71,582	)

INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES		(26,349	)		(57,497	)		267,316			-			183,470
(Benefit) provision for income taxes		-			(77,681	)		57,852			-			(19,829	)

NET INCOME (LOSS) FROM CONTINUING OPERATIONS		(26,349	)		20,184			209,464			-			203,299

DISCONTINUED OPERATIONS, NET OF TAX		-			(22,697	)		-			-			(22,697	)

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX		206,951			98,884			-			(305,835	)		-

NET INCOME	$	180,602		$	96,371		$	209,464		$	(305,835	)	$	180,602

Rowan Companies plc and Subsidiaries
Condensed Consolidating Income Statements
Year ended December 31, 2011
(in thousands)


	Rowan UK (Parent)			Rowan Delaware (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	-		$	128,561		$	925,238		$	(114,570	)	$	939,229

COSTS AND EXPENSES:
Direct operating costs (excluding items below)		-			76,869			545,767			(114,570	)		508,066
Depreciation and amortization		-			58,874			125,029			-			183,903
Selling, general and administrative		2,161			22,598			63,519			-			88,278
Loss (gain) on disposals of property and equipment		-			(157	)		(1,420	)		-			(1,577	)
Material charges and other operating expenses		-			10,976			-			-			10,976
Total costs and expenses		2,161			169,160			732,895			(114,570	)		789,646

INCOME (LOSS) FROM OPERATIONS		(2,161	)		(40,599	)		192,343			-			149,583

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized		-			(19,560	)		(3,162	)		2,651			(20,071	)
Interest income		1			3,110			270			(2,651	)		730
Other - net		-			640			(802	)		-			(162	)
Total other income (expense) - net		1			(15,810	)		(3,694	)		-			(19,503	)

INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES		(2,160	)		(56,409	)		188,649			-			130,080
(Benefit) provision for income taxes		-			(22,501	)		16,842			-			(5,659	)

NET INCOME (LOSS) FROM CONTINUING OPERATIONS		(2,160	)		(33,908	)		171,807			-			135,739

DISCONTINUED OPERATIONS, NET OF TAX		-			585,926			15,176			-			601,102

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX		739,001			179,168			-			(918,169	)		-

NET INCOME	$	736,841		$	731,186		$	186,983		$	(918,169	)	$	736,841

Rowan Companies plc and Subsidiaries
Condensed Consolidating Income Statements
Year ended December 31, 2010
(in thousands)


	Rowan UK (Parent)		Rowan Delaware (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	-	$	380,497		$	875,826		$	(238,618	)	$	1,017,705

COSTS AND EXPENSES:
Direct operating costs (excluding items below)		-		281,392			374,058			(238,618	)		416,832
Depreciation and amortization		-		59,991			78,310			-			138,301
Selling, general and administrative		-		59,889			18,769			-			78,658
Loss (gain) on disposals of property and equipment		-		(332	)		734			-			402
Material charges and other operating expenses		-		-			5,250			-			5,250
Total costs and expenses		-		400,940			477,121			(238,618	)		639,443

INCOME (LOSS) FROM OPERATIONS		-		(20,443	)		398,705			-			378,262

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized		-		(24,879	)		(22,256	)		22,256			(24,879	)
Interest income		-		23,061			484			(22,256	)		1,289
Gain on debt extinguishment		-		-			5,324			-			5,324
Other - net		-		(331	)		(130	)		-			(461	)
Total other income (expense) - net		-		(2,149	)		(16,578	)		-			(18,727	)

INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES		-		(22,592	)		382,127			-			359,535
(Benefit) provision for income taxes		-		(12,036	)		103,970			-			91,934

NET INCOME (LOSS) FROM CONTINUING OPERATIONS		-		(10,556	)		278,157			-			267,601

DISCONTINUED OPERATIONS, NET OF TAX		-		-			12,394			-			12,394

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX		279,995		290,551			-			(570,546	)		-

NET INCOME	$	279,995	$	279,995		$	290,551		$	(570,546	)	$	279,995

Rowan Companies plc and Subsidiaries
Statements of Comprehensive Income
Year ended December 31, 2012
(in thousands)


	Rowan UK (Parent)			Rowan Delaware (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME	$	180,602		$	96,371		$	209,464	$	(305,835	)	$	180,602

Other comprehensive income, net of tax:
Pension and other postretirement benefit adjustments, net of income taxes
Net loss arising during the period		(15,488	)		(15,488	)		-		15,488			(15,488	)
Prior service credit arising during the period		626			626			-		(626	)		626
Amortization of net loss		22,259			22,259			-		(22,259	)		22,259
Amortization of transition obligation		308			308			-		(308	)		308
Amortization of prior service credit		(3,116	)		(3,116	)		-		3,116			(3,116	)

OTHER COMPREHENSIVE INCOME		4,589			4,589			-		(4,589	)		4,589

COMPREHENSIVE INCOME	$	185,191		$	100,960		$	209,464	$	(310,424	)	$	185,191

Rowan Companies plc and Subsidiaries
Statements of Comprehensive Income
Year ended December 31, 2011
(in thousands)


	Rowan UK (Parent)			Rowan Delaware (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME	$	736,841		$	731,186		$	186,983	$	(918,169	)	$	736,841

Other comprehensive income, net of tax:
Pension and other postretirement benefit adjustments, net of income taxes
Net loss arising during the period		(79,888	)		(79,888	)		-		79,888			(79,888	)
Amortization of net loss		14,135			14,135			-		(14,135	)		14,135
Amortization of transition obligation		552			552			-		(552	)		552
Amortization of prior service credit		(14,975	)		(14,975	)		-		14,975			(14,975	)

OTHER COMPREHENSIVE INCOME		(80,176	)		(80,176	)		-		80,176			(80,176	)

COMPREHENSIVE INCOME	$	656,665		$	651,010		$	186,983	$	(837,993	)	$	656,665

Rowan Companies plc and Subsidiaries
Statements of Comprehensive Income
Year ended December 31, 2010
(in thousands)


	Rowan UK (Parent)			Rowan Delaware (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME	$	279,995		$	279,995		$	290,551	$	(570,546	)	$	279,995

Other comprehensive income, net of tax:
Pension and other postretirement benefit adjustments, net of income taxes
Net loss arising during the period		(3,779	)		(3,779	)		-		3,779			(3,779	)
Amortization of net loss		12,648			12,648			-		(12,648	)		12,648
Amortization of transition obligation		430			430			-		(430	)		430
Amortization of prior service credit		(4,473	)		(4,473	)		-		4,473			(4,473	)

OTHER COMPREHENSIVE INCOME		4,826			4,826			-		(4,826	)		4,826

COMPREHENSIVE INCOME	$	284,821		$	284,821		$	290,551	$	(575,372	)	$	284,821

Rowan Companies plc and Subsidiaries
Consolidated Statements of Cash Flows
Year ended December 31, 2012
(in thousands)


	Rowan UK (Parent)		Rowan Delaware (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

NET CASH PROVIDED BY OPERATING ACTIVITIES	$	33,797	$	94,628		$	406,149		$	(140,865	)	$	393,709

INVESTING ACTIVITIES:
Property, plant and equipment additions		-		(94,009	)		(591,247	)		-			(685,256	)
Proceeds from disposals of property, plant and equipment		-		6,406			4,094			-			10,500
Investments in consolidated subsidiaries		-		(256,160	)		-			256,160			-

Net cash used in investing activities		-		(343,763	)		(587,153	)		256,160			(674,756	)

FINANCING ACTIVITES:
Repayments of borrowings		-		(200,446	)		(38,007	)		-			(238,453	)
Advances (to) from affiliates		3,359		(611,666	)		608,307			-			-
Contributions from parent		-		-			256,160			(256,160	)		-
Proceeds from borrowings		-		1,104,929			-			-			1,104,929
Debt issue costs		-		(2,026	)		-			-			(2,026	)
Dividends paid to affiliates		-		-			(140,865	)		140,865			-
Proceeds from exercise of employee stock options		-		588			-			-			588
Excess tax benefits from share-based compensation		-		1,164			-			-			1,164

Net cash provided by (used in) financing activities		3,359		292,543			685,595			(115,295	)		866,202

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		37,156		43,408			504,591			-			585,155
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		21,472		184,677			232,704			-			438,853

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	58,628	$	228,085		$	737,295		$	-		$	1,024,008

Rowan Companies plc and Subsidiaries
Consolidated Statements of Cash Flows
Year ended December 31, 2011
(in thousands)


	Rowan UK (Parent)			Rowan Delaware (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

NET CASH PROVIDED BY OPERATING ACTIVITIES	$	(1,430	)	$	(235,989	)	$	332,098		$	-		$	94,679

INVESTING ACTIVITIES:
Property, plant and equipment additions		-			(125,481	)		(1,392,193	)		-			(1,517,674	)
Proceeds from disposals of property, plant and equipment		-			613			5,121			-			5,734
Proceeds from sales of manufacturing and land drilling operations, net		-			1,555,480			-			-			1,555,480
Change in restricted cash balance		-			-			15,265			-			15,265
Investments in consolidated subsidiaries		-			(881,450	)		-			881,450			-

Net cash used in investing activities		-			549,162			(1,371,807	)		881,450			58,805

FINANCING ACTIVITES:
Repayments of borrowings		-			(22,464	)		(29,702	)		-			(52,166	)
Advances (to) from affiliates		22,902			(260,380	)		237,478			-			-
Contributions from parent		-			-			881,450			(881,450	)		-
Payments to acquire treasury stock		-			(125,013	)		-			-			(125,013	)
Proceeds from exercise of employee stock options		-			19,941			-			-			19,941
Excess tax benefits from share-based compensation		-			4,359			769			-			5,128

Net cash provided by (used in) financing activities		22,902			(383,557	)		1,089,995			(881,450	)		(152,110	)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		21,472			(70,384	)		50,286			-			1,374
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		-			255,061			182,418			-			437,479

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	21,472		$	184,677		$	232,704		$	-		$	438,853

Rowan Companies plc and Subsidiaries
Consolidated Statements of Cash Flows
Year ended December 31, 2010
(in thousands)


	Rowan UK (Parent)		Rowan Delaware (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

NET CASH PROVIDED BY OPERATING ACTIVITIES	$	-	$	15,613		$	492,549		$	-		$	508,162

INVESTING ACTIVITIES:
Property, plant and equipment additions		-		(72,496	)		(418,064	)		-			(490,560	)
Proceeds from disposals of property, plant and equipment		-		807			2,460			-			3,267
Change in restricted cash balance		-		-			(15,265	)		-			(15,265	)
Cash acquired from SKDP transaction, net		-		(17,681	)		-			-			(17,681	)
Investments in consolidated subsidiaries		-		(965,864	)		-			965,864			-

Net cash used in investing activities		-		(1,055,234	)		(430,869	)		965,864			(520,239	)

FINANCING ACTIVITES:
Repayments of borrowings		-		(594,013	)		-			-			(594,013	)
Advances (to) from affiliates		-		845,782			(845,782	)		-			-
Contributions from parent		-		-			965,864			(965,864	)		-
Proceeds from borrowings - net of issue costs		-		395,517			-			-			395,517
Proceeds from exercise of employee stock options		-		7,959			-			-			7,959
Excess tax benefits from share-based compensation		-		412			-			-			412

Net cash provided by (used in) financing activities		-		655,657			120,082			(965,864	)		(190,125	)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		-		(383,964	)		181,762			-			(202,202	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		-		639,025			656			-			639,681

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	-	$	255,061		$	182,418		$	-		$	437,479