Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

September 30, 2015

(in thousands)

(unaudited)



	Rowan plc (Parent)		RCI (Issuer)		Non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	793	$	18,156	$	271,532	$	—		$	290,481
Receivables - trade and other	110		2,673		505,555		—			508,338
Other current assets	572		25,842		11,115		—			37,529
Total current assets	1,475		46,671		788,202		—			836,348

Property, plant and equipment - gross	—		576,017		8,457,411		—			9,033,428
Less accumulated depreciation and amortization	—		236,711		1,327,999		—			1,564,710
Property, plant and equipment - net	—		339,306		7,129,412		—			7,468,718

Investments in subsidiaries	4,618,762		5,998,404		—		(10,617,166		)	—
Due from affiliates	31,038		1,341,153		57,793		(1,429,984		)	—
Other assets	—		20,460		16,149		—			36,609
	$	4,651,275	$	7,745,994	$	7,991,556	$	(12,047,150	)	$	8,341,675

CURRENT LIABILITIES:
Accounts payable - trade	$	1,488	$	13,755	$	103,733	$	—		$	118,976
Deferred revenues	—		—		48,204		—			48,204
Accrued liabilities	630		95,938		54,923		—			151,491
Total current liabilities	2,118		109,693		206,860		—			318,671

Long-term debt	—		2,806,686		—		—			2,806,686
Due to affiliates	128		59,020		1,370,836		(1,429,984		)	—
Other liabilities	4,091		321,216		55,251		—			380,558
Deferred income taxes - net	—		517,450		142,872		(469,500		)	190,822
Shareholders' equity	4,644,938		3,931,929		6,215,737		(10,147,666		)	4,644,938
	$	4,651,275	$	7,745,994	$	7,991,556	$	(12,047,150	)	$	8,341,675

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

December 31, 2014

(in thousands)



	Rowan plc (Parent)		RCI (Issuer)		Non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	45,909	$	48,580	$	244,665	$	—		$	339,154
Receivables - trade and other	26		4,317		540,861		—			545,204
Other current assets	424		47,986		8,328		—			56,738
Total current assets	46,359		100,883		793,854		—			941,096

Property, plant and equipment - gross	—		610,063		8,190,119		—			8,800,182
Less accumulated depreciation and amortization	—		271,293		1,096,677		—			1,367,970
Property, plant and equipment - net	—		338,770		7,093,442		—			7,432,212

Investments in subsidiaries	4,624,874		5,863,509		—		(10,488,383		)	—
Due from affiliates	36,586		1,412,860		71,867		(1,521,313		)	—
Other assets	—		18,103		19,781		—			37,884
	$	4,707,819	$	7,734,125	$	7,978,944	$	(12,009,696	)	$	8,411,192

CURRENT LIABILITIES:
Accounts payable - trade	$	912	$	8,576	$	93,285	$	—		$	102,773
Deferred revenues	—		—		36,189		—			36,189
Accrued liabilities	400		100,167		93,692		—			194,259
Total current liabilities	1,312		108,743		223,166		—			333,221

Long-term debt	—		2,807,324		—		—			2,807,324
Due to affiliates	9,282		45,457		1,466,574		(1,521,313		)	—
Other liabilities	5,826		312,575		49,865		—			368,266
Deferred income taxes - net	—		507,281		167,094		(463,393		)	210,982
Shareholders' equity	4,691,399		3,952,745		6,072,245		(10,024,990		)	4,691,399
	$	4,707,819	$	7,734,125	$	7,978,944	$	(12,009,696	)	$	8,411,192

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended September 30, 2015

(in thousands)

(unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	—		$	15,886		$	543,591		$	(14,041	)	$	545,436

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			946			259,448			(12,752		)	247,642
Depreciation and amortization	—			6,819			97,189			101			104,109
Selling, general and administrative	5,433			(1,690		)	27,318			(1,390		)	29,671
Loss on disposals of property and equipment	—			482			1,768			—			2,250
Material charges and other operating expenses	—			—			332,347			—			332,347
Total costs and expenses	5,433			6,557			718,070			(14,041		)	716,019

INCOME (LOSS) FROM OPERATIONS	(5,433		)	9,329			(174,479		)	—			(170,583		)

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(41,344		)	(13,914		)	13,914			(41,344		)
Interest income	495			13,186			463			(13,914		)	230
Other - net	5,599			(5,642		)	(1,711		)	—			(1,754		)
Total other income (expense) - net	6,094			(33,800		)	(15,162		)	—			(42,868		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	661			(24,471		)	(189,641		)	—			(213,451		)
Provision (benefit) for income taxes	—			24,898			(11,764		)	12,862			25,996

NET INCOME (LOSS) FROM CONTINUING OPERATIONS	661			(49,369		)	(177,877		)	(12,862		)	(239,447		)

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	(240,108		)	(182,064		)	—			422,172			—

NET INCOME (LOSS)	$	(239,447	)	$	(231,433	)	$	(177,877	)	$	409,310		$	(239,447	)

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended September 30, 2014

(in thousands)

(unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	—		$	17,437		$	468,013		$	(17,758	)	$	467,692

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			(2,247		)	266,104			(16,950		)	246,907
Depreciation and amortization	—			3,439			78,213			(149		)	81,503
Selling, general and administrative	6,020			319			27,360			(659		)	33,040
Loss (gain) on disposals of property and equipment	—			74			(16		)	—			58
Material charges and other operating expenses	—			—			—			—			—
Total costs and expenses	6,020			1,585			371,661			(17,758		)	361,508

INCOME (LOSS) FROM OPERATIONS	(6,020		)	15,852			96,352			—			106,184

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(25,657		)	(713		)	714			(25,656		)
Interest income	71			746			269			(714		)	372
Other - net	9,798			(9,793		)	264			—			269
Total other income (expense) - net	9,869			(34,704		)	(180		)	—			(25,015		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	3,849			(18,852		)	96,172			—			81,169
(Benefit) provision for income taxes	—			(27,095		)	252			(11,585		)	(38,428		)

NET INCOME FROM CONTINUING OPERATIONS	3,849			8,243			95,920			11,585			119,597

DISCONTINUED OPERATIONS, NET OF TAX	—			—			—			—			—

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	115,748			34,944			—			(150,692		)	—

NET INCOME	$	119,597		$	43,187		$	95,920		$	(139,107	)	$	119,597

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Nine months ended September 30, 2015

(in thousands)

(unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	—		$	49,222		$	1,600,037		$	(48,048	)	$	1,601,211

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			5,816			795,998			(44,494		)	757,320
Depreciation and amortization	—			14,787			273,588			814			289,189
Selling, general and administrative	16,651			375			75,757			(4,368		)	88,415
Loss on disposals of property and equipment	—			486			1,589			—			2,075
Material charges and other operating expenses	—			—			337,347			—			337,347
Total costs and expenses	16,651			21,464			1,484,279			(48,048		)	1,474,346

INCOME (LOSS) FROM OPERATIONS	(16,651		)	27,758			115,758			—			126,865

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(104,930		)	(20,455		)	20,455			(104,930		)
Interest income	753			19,753			769			(20,455		)	820
Other - net	16,804			(16,760		)	(2,919		)	—			(2,875		)
Total other income (expense) - net	17,557			(101,937		)	(22,605		)	—			(106,985		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	906			(74,179		)	93,153			—			19,880
Provision for income taxes	—			27,305			30,452			(6,834		)	50,923

NET INCOME (LOSS) FROM CONTINUING OPERATIONS	906			(101,484		)	62,701			6,834			(31,043		)

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	(31,949		)	(158,557		)	—			190,506			—

NET INCOME (LOSS)	$	(31,043	)	$	(260,041	)	$	62,701		$	197,340		$	(31,043	)

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Nine months ended September 30, 2014

(in thousands)

(unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	—		$	46,854		$	1,269,101		$	(47,783	)	$	1,268,172

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			7,243			749,886			(45,275		)	711,854
Depreciation and amortization	—			13,152			217,403			(501		)	230,054
Selling, general and administrative	17,563			3,650			72,851			(2,007		)	92,057
Loss on disposals of property and equipment	—			402			1,318			—			1,720
Proceeds from litigation settlement	—			—			(20,875		)	—			(20,875		)
Material charges and other operating expenses	—			—			8,300			—			8,300
Total costs and expenses	17,563			24,447			1,028,883			(47,783		)	1,023,110

INCOME (LOSS) FROM OPERATIONS	(17,563		)	22,407			240,218			—			245,062

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(74,309		)	(1,304		)	1,305			(74,308		)
Interest income	274			1,746			1,006			(1,305		)	1,721
Other - net	16,798			(16,782		)	(643		)	—			(627		)
Total other income (expense) - net	17,072			(89,345		)	(941		)	—			(73,214		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(491		)	(66,938		)	239,277			—			171,848
(Benefit) provision for income taxes	—			(48,367		)	37,618			(25,416		)	(36,165		)

NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(491		)	(18,571		)	201,659			25,416			208,013

DISCONTINUED OPERATIONS, NET OF TAX	—			4,023			—			—			4,023

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	212,527			52,525			—			(265,052		)	—

NET INCOME	$	212,036		$	37,977		$	201,659		$	(239,636	)	$	212,036

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended September 30, 2015

(in thousands)

(unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated

NET INCOME (LOSS)	$	(239,447	)	$	(231,433	)	$	(177,877	)	$	409,310		$	(239,447	)

OTHER COMPREHENSIVE INCOME:
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes	3,456			3,456			—			(3,456		)	3,456

COMPREHENSIVE INCOME (LOSS)	$	(235,991	)	$	(227,977	)	$	(177,877	)	$	405,854		$	(235,991	)

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended September 30, 2014

(in thousands)

(unaudited)



	Rowan plc (Parent)		RCI (Issuer)		Non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME (LOSS)	$	119,597	$	43,187	$	95,920	$	(139,107	)	$	119,597

OTHER COMPREHENSIVE INCOME:
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes	2,453		2,453		—		(2,453		)	2,453

COMPREHENSIVE INCOME (LOSS)	$	122,050	$	45,640	$	95,920	$	(141,560	)	$	122,050

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Nine months ended September 30, 2015

(in thousands)

(unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME (LOSS)	$	(31,043	)	$	(260,041	)	$	62,701	$	197,340		$	(31,043	)

OTHER COMPREHENSIVE INCOME:
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes	10,255			10,255			—		(10,255		)	10,255

COMPREHENSIVE INCOME (LOSS)	$	(20,788	)	$	(249,786	)	$	62,701	$	187,085		$	(20,788	)

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Nine months ended September 30, 2014

(in thousands)

(unaudited)



	Rowan plc (Parent)		RCI (Issuer)		Non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME	$	212,036	$	37,977	$	201,659	$	(239,636	)	$	212,036

OTHER COMPREHENSIVE INCOME:
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes	7,281		7,281		—		(7,281		)	7,281

COMPREHENSIVE INCOME	$	219,317	$	45,258	$	201,659	$	(246,917	)	$	219,317

Rowan Companies plc and Subsidiaries

Consolidating Statements of Cash Flows

Nine months ended September 30, 2015

(in thousands)

(unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(3,776	)	$	22,571		$	687,535		$	(47,459	)	$	658,871

INVESTING ACTIVITIES:
Property, plant and equipment additions	—			(14,836		)	(659,980		)	—			(674,816		)
Proceeds from disposals of property, plant and equipment	—			2,836			2,308			—			5,144
Advances on subsidiary notes receivables	—			(481,300		)	—			481,300			—
Collections on subsidiary notes receivables	7,000			434,190			—			(441,190		)	—
Investments in consolidated subsidiaries	—			(36,704		)	—			36,704			—

Net cash used in investing activities	7,000			(95,814		)	(657,672		)	76,814			(669,672		)

FINANCING ACTIVITIES:
Advances (to) from affiliates	(10,468		)	42,819			(30,810		)	(1,541		)	—
Contributions from parent	—			—			36,704			(36,704		)	—
Proceeds from borrowings	—			220,000			481,300			(481,300		)	220,000
Repayments of borrowings	—			(220,000		)	(441,190		)	441,190			(220,000		)
Dividends paid	(37,872		)	—			(49,000		)	49,000			(37,872		)

Net cash used in financing activities	(48,340		)	42,819			(2,996		)	(29,355		)	(37,872		)

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(45,116		)	(30,424		)	26,867			—			(48,673		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	45,909			48,580			244,665			—			339,154

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	793		$	18,156		$	271,532		$	—		$	290,481

Rowan Companies plc and Subsidiaries

Consolidating Statements of Cash Flows

Nine months ended September 30, 2014

(in thousands)

(unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	66,891		$	294,344		$	432,075		$	(593,088	)	$	200,222

INVESTING ACTIVITIES:
Property, plant and equipment additions	—			(15,995		)	(1,351,419		)	—			(1,367,414		)
Proceeds from disposals of property, plant and equipment	—			6,955			2,812			—			9,767
Investments in consolidated subsidiaries	—			(105,261		)	—			105,261			—

Net cash used in investing activities	—			(114,301		)	(1,348,607		)	105,261			(1,357,647		)

FINANCING ACTIVITIES:
Advances (to) from affiliates	(20,771		)	(927,293		)	532,376			415,688			—
Contributions from parent	—			—			105,261			(105,261		)	—
Proceeds from borrowings	—			793,380			—			—			793,380
Debt issue costs	—			(687		)	—			—			(687		)
Dividends paid	(25,123		)	(75,000		)	(102,400		)	177,400			(25,123		)
Excess tax benefit from share-based compensation	—			15			—			—			15
Proceeds from exercise of share options	4,725			—			—			—			4,725

Net cash provided by (used in) financing activities	(41,169		)	(209,585		)	535,237			487,827			772,310

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	25,722			(29,542		)	(381,295		)	—			(385,115		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	64,292			92,116			936,436			—			1,092,844

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	90,014		$	62,574		$	555,141		$	—		$	707,729