8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 3, 2010

ROWAN COMPANIES, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	1-5491	75-0759420
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	file Number)	Identification No.)

2800 POST OAK BOULEVARD
SUITE 5450
HOUSTON, TEXAS	77056-6189
(Address of principal executive offices)	(zip code)

(713) 621-7800

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c))

Item 2.02 - Results of Operations and Financial Condition

The following information is furnished pursuant to Item 2.02 - Results of Operations and Financial Condition:

On August 3, 2010, Rowan Companies, Inc. issued a press release announcing its operating results for the second quarter of 2010. The press release is attached as Exhibit 99.1.

On May 4, 2010, Rowan Companies, Inc. issued a press release announcing its operating results for the first quarter of 2010. The press release is attached as Exhibit 99.2.

On March 1, 2010, Rowan Companies, Inc. issued a press release announcing its operating results for the fourth quarter 2009. The press release is attached as Exhibit 99.3.

Item 9.01 - Financial Statements and Exhibits

(c) Exhibits

Exhibit
Number	Exhibit Description
99.1	Press release of Rowan Companies, Inc. dated August 3, 2010 announcing its operating results for the second quarter of 2010
99.2	Press release of Rowan Companies, Inc. dated May 4, 2010 announcing its operating results for the first quarter of 2010
99.3	Press release of Rowan Companies, Inc. dated March 1, 2010 announcing its operating results for the fourth quarter of 2009

-2-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ROWAN COMPANIES, INC.
By:	/s/ William  H. Wells
	William  H. Wells,
	Senior Vice President, Chief Financial Officer & Treasurer

Dated: August 3, 2010

-3-

INDEX TO EXHIBITS

Exhibit
Number	Exhibit Description
99.1	Press release of Rowan Companies, Inc. dated August 3, 2010 announcing its operating results for the second quarter of 2010
99.2	Press release of Rowan Companies, Inc. dated May 4, 2010 announcing its operating results for the first quarter of 2010
99.3	Press release of Rowan Companies, Inc. dated March 1, 2010 announcing its operating results for the fourth quarter of 2009

-4-

EX-99.1

     News Release

FOR IMMEDIATE RELEASE August 3, 2010

Rowan Reports Second Quarter 2010 Operating Results

HOUSTON, TEXAS – For the three months ended June 30, 2010, Rowan Companies, Inc. (“Rowan” or the “Company”) (NYSE: RDC) generated net income of $90.9 million or $0.79 per share, compared to $96.6 million or $0.85 per share in the second quarter of 2009.  Revenues were $490.1 million in the second quarter of 2010, compared to $482.2 million in the second quarter of 2009.

Rowan’s drilling operations generated revenues of $328.3 million in the second quarter of 2010, up by 2% from the prior-year quarter as the impact of offshore fleet additions and higher land rig utilization more than offset lower average day rates.  The Company’s gross drilling margin was 58% of revenues in the second quarter of 2010, up from 57% in the prior-year quarter as a result of continued focus on cost effectiveness.  Income from drilling operations was $124.0 million in the second quarter of 2010, down by 3% from the prior-year quarter due to higher depreciation and selling, general and administrative expenses.

Rowan’s manufacturing operations generated external revenues of $161.8 million in the second quarter of 2010, unchanged from the prior-year quarter.  The Company’s gross manufacturing margin was 15% of revenues in the second quarter of 2010, up from 9% in the prior-year quarter.  Income from manufacturing operations was $6.4 million in the second quarter of 2010, up by 137% from the prior-year quarter.

Matt Ralls, President and Chief Executive Officer, commented, “Our contract drilling operations turned in very good results in the second quarter.  As a result, our earnings came in well above consensus expectations, with roughly half the beat from higher drilling revenues and half from lower drilling expenses.  Our manufacturing group had strong revenue for the quarter, especially from the mining products and steel groups, but also had higher than expected expenses, primarily related to warranty costs, bad debts and other charges resulting from an intensive review by the new management team at LeTourneau.  As a result, overall manufacturing margins basically met expectations.

“We continue to see good demand for high-spec jack ups, and expect to receive a commitment for the EXL-III in the near future.  Our track record of finding term contracts for each of our recent new build jack-ups prior to delivery gives us confidence that we will find attractive opportunities for the three N-class rigs we will be acquiring in the Skeie Drilling transaction.  We expect to begin the tender process for the 50% of the SKDP stock not already committed to us later this month and hope to conclude it by the end of September.”

2800 Post Oak Blvd., Suite 5450,  Houston, Texas 77056

Tel: (713) 621-7800  Fax: (713) 960-7509

Rowan will conduct its earnings conference call on Tuesday, August 3, 2010, at 10:00 a.m. Central Daylight Time.  Interested parties are invited to listen to the call by telephone or over the Internet.  Individuals who wish to participate on the conference call by telephone can dial (877) 869-3847, or internationally (201) 689-8261.  Alternatively, to access the online simulcast and rebroadcast of the conference call, please visit Rowan’s website at www.rowancompanies.com.  You should connect to our website at least 15 minutes prior to the conference call to register, download and install any necessary software.

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.  For more information on Rowan, please visit 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.

Contact:

Suzanne M. McLeod

Director of Investor Relations

(713) 960-7517

smcleod@rowancompanies.com

-2-

ROWAN  COMPANIES,  INC.

CONDENSED  CONSOLIDATED  BALANCE  SHEETS

Unaudited  (In  Millions)

	JUNE 30,		DECEMBER 31,
	2010		2009
ASSETS
Cash  and  cash  equivalents	$	610.9	$	639.7
Accounts  receivable		353.0		343.6
Inventories		381.5		451.7
Other  current  assets		118.1		114.8
Total  current  assets		1,463.5		1,549.8
Property,  plant  and  equipment  -  net		3,698.4		3,579.5
Other  assets		76.7		81.4
TOTAL	$	5,238.6	$	5,210.7
LIABILITIES  AND  STOCKHOLDERS'  EQUITY
Current  maturities  of  long-term  debt	$	58.6	$	64.9
Accounts  payable		109.5		124.6
Other  current  liabilities		270.3		378.8
Total  current  liabilities		438.4		568.3
Long-term  debt		761.6		787.5
Other  liabilities		765.8		744.5
Stockholders'  equity		3,272.8		3,110.4
TOTAL	$	5,238.6	$	5,210.7

-3-

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,
	2010			2009		2010			2009
REVENUES	$	490.1		$	482.2	$	922.5		$	977.0
COSTS  AND  EXPENSES:
Operations		277.1			284.2		498.2			520.4
Depreciation  and  amortization		46.5			42.6		92.0			83.1
Selling,  general  and  administrative		36.1			24.7		61.9			49.3
Gain  on  disposals  of  property  and  equipment		-			0.1		(0.1	)		(4.6	)
Material  charge  for  manufacturing  inventories		-			-		42.0			-
Total		359.7			351.6		694.0			648.2
INCOME  FROM  OPERATIONS		130.4			130.6		228.5			328.8
Net  interest  and  other  income		(6.5	)		2.5		(10.4	)		3.9
INCOME  BEFORE  INCOME  TAXES		123.9			133.1		218.1			332.7
Provision  for  income  taxes		33.0			36.5		62.6			104.4
NET  INCOME	$	90.9		$	96.6	$	155.5		$	228.3
NET  INCOME  PER  DILUTED  SHARE	$	0.79		$	0.85	$	1.36		$	2.01
AVERAGE  DILUTED  SHARES		115.0			113.6		114.8			113.4

NOTE:  See Supplemental Drilling and Manufacturing tables for additional operating information.

-4-

ROWAN  COMPANIES,  INC.

CONDENSED  CONSOLIDATED   STATEMENTS  OF  CASH  FLOWS

Unaudited  (In  Millions)

	SIX MONTHS
	ENDED JUNE 30,
	2010			2009
CASH  PROVIDED  BY  (USED  IN):
Operations:
Net income	$	155.5		$	228.3
Adjustments  to  reconcile  net  income  to  net
cash  provided  by  operations:
Depreciation  and  amortization		92.0			83.1
Deferred  income  taxes		6.1			42.2
Gain  on  disposals  of  assets		(0.1	)		(4.6	)
Other -  net		(17.4	)		11.0
Net  changes  in  current  assets  and  liabilities		(24.4	)		(133.1	)
Net  changes  in  other  noncurrent  assets  and  liabilities		(1.4	)		(2.0	)
Net  cash  provided  by  (used  in)  operations		210.3			224.9
Investing  activities:
Property,  plant  and  equipment  additions		(210.4	)		(210.3	)
Proceeds  from  disposals  of  property,  plant  and  equipment		0.9			5.5
Net  cash  used  in  investing  activities		(209.5	)		(204.8	)
Financing  activities:
Repayments  of  borrowings		(32.5	)		(32.5	)
Proceeds  from  equity  compensation  plans  and  other		2.9			3.8
Net  cash  used  in  financing  activities		(29.6	)		(28.7	)
DECREASE  IN  CASH  AND  CASH  EQUIVALENTS		(28.8	)		(8.6	)
CASH  AND  CASH  EQUIVALENTS,  BEGINNING  OF  PERIOD		639.7			222.4
CASH  AND  CASH  EQUIVALENTS,  END  OF  PERIOD	$	610.9		$	213.8

-5-

ROWAN  COMPANIES,  INC.

SUPPLEMENTAL  DRILLING  INFORMATION

Unaudited  (dollars  in  millions,  except  where  otherwise  indicated )

	THREE  MONTHS  ENDED
	June 30, 2010											March 31, 2010											June 30, 2009
	$ (a)			Elims.		$ (b)			% Revs.			$ (a)			Elims.		$ (b)			% Revs.			$			% Revs.
DRILLING  OPERATIONS:
Revenues	$	328.3				$	328.3			100		$	331.0				$	331.0			100		$	320.8			100
Operating costs (excluding items shown below)		(139.7	)	$	0.7		(139.0	)		(42	)		(137.3	)	$	0.8		(136.5	)		(41	)		(136.8	)		(43	)
Depreciation and amortization expense		(43.3	)		1.4		(41.9	)		(13	)		(42.8	)		1.3		(41.5	)		(13	)		(38.7	)		(12	)
Selling, general and administrative expenses (c)		(23.4	)				(23.4	)		(7	)		(16.3	)				(16.3	)		(5	)		(17.4	)		(5	)
Gain on sale of property and equipment		-					-			-			0.3					0.3			0			-			-
Income from operations	$	121.9		$	2.1	$	124.0			38		$	134.9		$	2.1	$	137.0			41		$	127.9			40
EBITDA (d)	$	165.2		$	0.7	$	165.9			51		$	177.4		$	0.8	$	178.2			54		$	166.6			52
OFFSHORE  RIG  DAYS:
Operating							1,589											1,556						1,561
Available							2,128											2,070						2,002
Utilization							75	%										75	%					78	%
LAND  RIG  DAYS:
Operating							2,265											2,044						1,721
Available							2,912											2,880						2,849
Utilization							78	%										71	%					60	%
AVERAGE  DAY  RATES  (in  thousands):
Gulf  of  Mexico  rigs						$	137.2										$	142.0					$	150.4
Middle  East  rigs							142.7											161.6						144.7
North  Sea  rigs							269.3											287.7						285.4
All  offshore  rigs							174.5											183.2						177.2
Land  rigs							19.8											20.4						22.4

(a) Amounts include effects of intercompany transactions between drilling and manufacturing operations.

(b) Amounts exclude effects of intercompany transactions.

(c) Amounts include corporate SG&A costs that are allocated between operating segments.

(d) EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure that we believe is relevant to our stockholders.

We measure EBITDA as operating income plus depreciation less gain on sale.

-6-

ROWAN  COMPANIES,  INC.

SUPPLEMENTAL  MANUFACTURING  INFORMATION

Unaudited  (dollars  in  millions)

	THREE MONTHS ENDED
	June 30, 2010															March 31, 2010															June 30, 2009
	$ (a)			% Revs.			Elims.			$ (b)			% Revs.			$ (a)			% Revs.			Elims.			$ (b)			% Revs.			$			% Revs.
MANUFACTURING  OPERATIONS:
Revenues	$	214.2			100		$	(52.4	)	$	161.8			100		$	147.1			100		$	(45.7	)	$	101.4			100		$	161.4			100
Operating costs (excluding items shown below)		(175.3	)		(82	)		37.2			(138.1	)		(85	)		(118.8	)		(81	)		34.2			(84.6	)		(83	)		(147.4	)		(91	)
Depreciation and amortization expense		(4.6	)		(2	)					(4.6	)		(3	)		(4.0	)		(3	)					(4.0	)		(4	)		(3.9	)		(2	)
Selling, general and administrative expenses (c)		(12.7	)		(6	)					(12.7	)		(8	)		(9.5	)		(6	)					(9.5	)		(9	)		(7.3	)		(5	)
Loss on sale of property and equipment		-			-						-			-			(0.2	)		(0	)					(0.2	)		(0	)		(0.1	)		(0	)
Material charge for inventories		-			-						-			-			(42.0	)		(29	)					(42.0	)		(41	)		-			-
Income from operations	$	21.6			10		$	(15.2	)	$	6.4			4		$	(27.4	)		(19	)	$	(11.5	)	$	(38.9	)		(38	)	$	2.7			2
EBITDA (d)	$	26.2			12		$	(15.2	)	$	11.0			7		$	18.8			13		$	(11.5	)	$	7.3			7		$	6.7			4
REVENUES:
Drilling  Products  and  Systems	$	124.1			58		$	(52.4	)	$	71.7			44		$	96.0			65		$	(45.7	)	$	50.3			50		$	106.8			66
Mining,  Forestry  and  Steel  Products		90.1			42			-			90.1			56			51.1			35			-			51.1			50			54.6			34
Total	$	214.2			100		$	(52.4	)	$	161.8			100		$	147.1			100		$	(45.7	)	$	101.4			100		$	161.4			100
MANUFACTURING  BACKLOG:
Drilling  Products  and  Systems	$	434.4					$	(175.8	)	$	258.6					$	521.1					$	(218.9	)	$	302.2					$	489.6
Mining,  Forestry  and  Steel  Products		78.1						-			78.1						89.8						-			89.8						28.2
Total	$	512.5					$	(175.8	)	$	336.7					$	610.9					$	(218.9	)	$	392.0					$	517.8

(a) Amounts include effects of intercompany transactions between manufacturing and drilling operations.

(b) Amounts exclude effects of intercompany transactions.

(c) Amounts include corporate SG&A costs that are allocated between operating segments.

(d) EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure that we believe is relevant to our stockholders.

-7-

EX-99.2

  
    Unassociated Document
    
    
    
    
    
    

EX-99.3

     News Release

FOR IMMEDIATE RELEASE March 1, 2010

Rowan Reports Fourth Quarter 2009 Operating Results

HOUSTON, TEXAS – For the three months ended December 31, 2009, Rowan Companies, Inc. (“Rowan” or the “Company”) (NYSE: RDC) generated net income of $60.8 million or $0.53 per share, compared to $94.3 million or $0.83 per share in the fourth quarter of 2008.  Revenues were $399.8 million in the fourth quarter of 2009, compared to $613.0 million in the fourth quarter of 2008.

Results for the fourth quarter of 2009 included $1.4 million or $0.01 per share of gains on asset disposals, compared to $39.4 million or $0.23 per share in the fourth quarter of 2008.  As previously reported, the fourth quarter 2008 results included $111.2 million, or $0.68 per share of material charges and other expenses.  The current year included no material charges.

For the year ended December 31, 2009, the Company generated net income of $367.5 million or $3.24 per share on revenues of $1.8 billion, compared to net income of $427.6 million or $3.77 per share on revenues of $2.2 billion in 2008.  The 2009 results included $5.7 million or $0.03 per share of gains in asset disposals in 2009, compared to $67.8 million or $0.39 per share in 2008.

The 2009 results also included $25.4 million or $0.22 per share of tax benefits related to a recent third-party tax court ruling, which provided that certain foreign-source income is not taxable in the United States.  Excluding these tax benefits and the material charges and disposal gains described above, earnings were $338.3 million or $2.98 per share in 2009 and $460.7 million or $4.06 per share in 2008.

Rowan’s drilling operations generated revenues of $255.3 million in the fourth quarter of 2009, down by 34% from the prior-year quarter due primarily to lower rig utilization.  The Company’s gross drilling margin was 52% of revenues in the fourth quarter of 2009, down from 62% in the prior-year quarter.  Income from drilling operations was $76.0 million in the fourth quarter of 2009, down by 66% from the prior-year quarter (excluding material charges).

Rowan’s manufacturing operations generated external revenues of $144.5 million in the fourth quarter of 2009, down by 36% from the prior-year quarter.  The Company’s gross manufacturing margin was 17% of revenues in the fourth quarter of 2009, down from 25% in the prior-year quarter.  Income from manufacturing operations was $9.1 million in the fourth quarter of 2009, down by 78% from the prior-year quarter (excluding material charges).

Matt Ralls, President and Chief Executive Officer, commented, “During the last few months, we have seen increased activity and tendering in virtually every jack-up market segment worldwide, with the Middle East, North Sea and Gulf of Mexico regions being the most significant for our fleet.  We continue to see good demand for higher-specification jack-ups, and have added backlog at attractive day rates for our Super Gorillas.  We are especially pleased to have played a role in McMoRan’s ultra-deep gas discovery, ‘Davy Jones,’ in the U. S. Gulf of Mexico, and we now have three high-spec jack-ups and the Rowan-Louisiana committed to or under contract with McMoRan.  We are optimistic that this significant discovery will lead to future increases in ultra-deep gas drilling activity in the Gulf of Mexico requiring jack-up rigs with the advanced operating capabilities that characterize the Rowan fleet.

2800 Post Oak Blvd., Suite 5450,  Houston, Texas 77056

Tel: (713) 621-7800  Fax: (713) 960-7509

“Additionally, we have seen a very strong recovery in the U. S. land rig market and have reactivated or obtained commitments for several land rigs in the fourth quarter of 2009 and so far in 2010.  This pickup in activity for Rowan’s high quality land rig fleet is all the more impressive considering that there remain nearly one thousand idle land rigs in North America.  It demonstrates the increasing willingness by operators to pay higher rates for more efficient equipment, enabling them to reduce overall drilling costs.  We believe there is a similar high-grading trend occurring in the global jack-up market that will allow us to obtain attractive day rates for our premium and high-spec jack-ups despite the large number of idle rigs at the low end of the jack-up market.”

Rowan will conduct its earnings conference call on Monday, March 1, 2010, at 10:00 a.m. Central Daylight Time.  Interested parties are invited to listen to the call by telephone or over the Internet.  Individuals who wish to participate on the conference call by telephone can dial (877) 869-3847, or internationally (201) 689-8261.  Alternatively, to access the online simulcast and rebroadcast of the conference call, please visit Rowan’s website at www.rowancompanies.com.  You should connect to our website at least 15 minutes prior to the conference call to register, download and install any necessary software.

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.  For more information on Rowan, please visit 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.

Contact:

Suzanne M. McLeod

Director of Investor Relations

(713) 960-7517

smcleod@rowancompanies.com

-2-

ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In Millions)
	DECEMBER 31
	2009		2008
ASSETS
Cash  and  cash  equivalents	$	639.7	$	222.4
Accounts  receivable		343.6		485.0
Inventories		451.7		551.4
Other  current  assets		114.8		110.4
Total  current  assets		1,549.8		1,369.2
Property,  plant  and  equipment  -  net		3,579.5		3,147.5
Other  assets		81.4		32.2
TOTAL	$	5,210.7	$	4,548.9
LIABILITIES  AND  STOCKHOLDERS'  EQUITY
Current  maturities  of  long-term  debt	$	64.9	$	64.9
Accounts  payable		124.6		235.0
Other  current  liabilities		378.8		444.7
Total  current  liabilities		568.3		744.6
Long-term  debt		787.5		355.6
Other  liabilities		744.5		788.9
Stockholders'  equity		3,110.4		2,659.8
TOTAL	$	5,210.7	$	4,548.9

-3-

ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited (In Millions Except Per Share Amounts)
	THREE MONTHS						TWELVE MONTHS
	ENDED DECEMBER 31						ENDED DECEMBER 31
	2009			2008			2009			2008
REVENUES	$	399.8		$	613.0		$	1,770.2		$	2,212.7
COSTS  AND  EXPENSES:
Operations		242.1			316.7			1,000.7			1,254.6
Depreciation  and  amortization		44.6			38.6			171.4			141.4
Selling,  general  and  administrative		29.4			29.4			102.8			115.2
Gain  on  disposals  of  property  and  equipment		(1.4	)		(39.4	)		(5.7	)		(67.8	)
Material  charges  and  other  operating  expenses		-			111.2			-			111.2
Total		314.7			456.5			1,269.2			1,554.6
INCOME  FROM  OPERATIONS		85.1			156.5			501.0			658.1
Net  interest  and  other  income		(3.1	)		(8.1	)		0.1			(4.0	)
INCOME  BEFORE  INCOME  TAXES		82.0			148.4			501.1			654.1
Provision  for  income  taxes		21.2			54.1			133.6			226.5
NET  INCOME	$	60.8		$	94.3		$	367.5		$	427.6
NET  INCOME  PER  DILUTED  SHARE	$	0.53		$	0.83		$	3.24		$	3.77
AVERAGE  DILUTED  SHARES		114.0			113.1			113.6			113.3

-4-

ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited (In Millions)
	TWELVE MONTHS
	ENDED DECEMBER 31
	2009			2008
CASH  PROVIDED  BY  (USED  IN):
Operations:
Net income	$	367.5		$	427.6
Adjustments  to  reconcile  net  income  to  net
cash  provided  by  operations:
Depreciation  and  amortization		171.4			141.4
Deferred  income  taxes		15.8			51.1
Gain  on  disposals  of  assets		(5.7	)		(67.8	)
Other -  net		12.9			27.1
Net  changes  in  current  assets  and  liabilities		7.1			131.9
Net  changes  in  other  noncurrent  assets  and  liabilities		(24.9	)		(16.9	)
Net  cash  provided  by  operations		544.1			694.4
Investing  activities:
Property,  plant  and  equipment  additions		(566.4	)		(829.2	)
Proceeds  from  disposals  of  property,  plant  and  equipment		8.6			97.7
Decrease  in  Restricted  cash  balance		-			50.0
Net  cash  used  in  investing  activities		(557.8	)		(681.5	)
Financing  activities:
Proceeds from borrowings		491.7			80.0
Repayments  of  borrowings		(64.9	)		(144.9	)
Payment  of  cash  dividends		-			(45.0	)
Proceeds  from  equity  compensation  plans  and  other		4.2			34.9
Net  cash  provided  by  (used  in)  financing  activities		431.0			(75.0	)
INCREASE  (DECREASE)  IN  CASH  AND  CASH  EQUIVALENTS		417.3			(62.1	)
CASH  AND  CASH  EQUIVALENTS,  BEGINNING  OF  PERIOD		222.4			284.5
CASH  AND  CASH  EQUIVALENTS,  END  OF  PERIOD	$	639.7		$	222.4

-5-

ROWAN  COMPANIES,  INC.

SUPPLEMENTAL  DRILLING  INFORMATION

Unaudited  (dollars  in  millions,  except  where  otherwise  indicated )

	THREE  MONTHS  ENDED
	December 31, 2009											September 30, 2009											December 31, 2008
	$ (a)			Elims.		$ (b)			% Revs.			$ (a)			Elims.		$ (b)			% Revs.			$			% Revs.
DRILLING  OPERATIONS:
Revenues	$	255.3				$	255.3			100		$	258.4				$	258.4			100		$	386.7			100
Operating costs (excluding items shown below)		(122.7	)	$	1.0		(121.7	)		(48	)		(122.2	)	$	0.9		(121.3	)		(47	)		(146.7	)		(38	)
Depreciation and amortization expense		(40.6	)				(40.6	)		(16	)		(39.8	)				(39.8	)		(15	)		(34.7	)		(9	)
Selling, general and administrative expenses (c)		(18.5	)				(18.5	)		(7	)		(16.3	)				(16.3	)		(6	)		(18.6	)		(5	)
Gain on sale of property and equipment		1.5					1.5			1			0.1					0.1			0			39.6			10
Material charges and other operating expenses		-					-			-			-					-			-			(24.6	)		(6	)
Income from operations	$	75.0		$	1.0	$	76.0			30		$	80.2		$	0.9	$	81.1			31		$	201.7			52
EBITDA (d)	$	114.1		$	1.0	$	115.1			45		$	119.9		$	0.9	$	120.8			47		$	221.4			57
OFFSHORE  RIG  DAYS:
Operating							1,277											1,197						1,911
Available							2,024											2,024						1,926
Utilization							63	%										59	%					99	%
LAND  RIG  DAYS:
Operating							1,747											1,652						2,485
Available							2,944											2,944						2,758
Utilization							59	%										56	%					90	%
AVERAGE  DAY  RATES  (in  thousands):
Gulf  of  Mexico  rigs						$	123.3										$	137.9					$	144.6
Middle  East  rigs							164.2											161.4						156.9
North  Sea  rigs							195.9											209.2						272.1
All  offshore  rigs							167.7											182.5						170.1
Land  rigs							21.8											22.5						23.7

(a)	Amounts include effects of intercompany transactions between drilling and manufacturing operations.
(b)	Amounts exclude effects of intercompany transactions.
(c)	Amounts include corporate SG&A costs that are allocated between operating segments.
(d)	EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure that we believe is relevant to our stockholders.
	We measure EBITDA as operating income plus depreciation less gain on sale.

-6-

ROWAN  COMPANIES,  INC.

SUPPLEMENTAL  MANUFACTURING  INFORMATION

Unaudited  (dollars  in  millions)

	THREE  MONTHS  ENDED
	December 31, 2009															September 30, 2009															December 31, 2008
	$ (a)			% Revs.			Elims.			$ (b)			% Revs.			$ (a)			% Revs.			Elims.			$ (b)			% Revs.				$		% Revs.
MANUFACTURING OPERATIONS
Revenues	$	230.7			100		$	(86.2	)	$	144.5			100		$	219.1			100		$	(84.1	)	$	135.0			100		$	226.3		100
Operating costs (excluding items shown below)		(168.9	)		(73	)		48.5			(120.4	)		(83	)		(172.6	)		(79	)		55.7			(116.9	)		(87	)		(170.0	)	(75	)
Depreciation and amortization expense		(4.0	)		(2	)					(4.0	)		(3	)		(3.9	)		(2	)					(3.9	)		(3	)		(3.9	)	(2	)
Selling, general and administrative expenses (c)		(10.9	)		(5	)					(10.9	)		(8	)		(7.8	)		(4	)					(7.8	)		(6	)		(10.8	)	(5	)
Loss on sale of property and equipment		(0.1	)		(0	)					(0.1	)		(0	)		(0.4	)		(0	)					(0.4	)		(0	)		(0.2	)	(0	)
Material charges and other operating expenses		-			-						-			-			-			-						-			-			(86.6	)	(38	)
Income from operations	$	46.8			20		$	(37.7	)	$	9.1			6		$	34.4			16		$	(28.4	)	$	6.0			4		$	(45.2	)	(20	)
EBITDA (d)	$	50.9			22		$	(37.7	)	$	13.2			9		$	38.7			18		$	(28.4	)	$	10.3			8		$	45.5		20
REVENUES
Drilling  Products  and  Systems	$	184.2			80		$	(86.2	)	$	98.0			68		$	177.5			81		$	(84.1	)	$	93.4			69		$	133.1		59
Mining,  Forestry  and  Steel  Products		46.5			20			-			46.5			32			41.6			19			-			41.6			31			93.2		41
Total	$	230.7			100		$	(86.2	)	$	144.5			100		$	219.1			100		$	(84.1	)	$	135.0			100		$	226.3		100
MANUFACTURING BACKLOG:
Drilling  Products  and  Systems	$	593.1					$	(261.6	)	$	331.5					$	745.4					$	(340.9	)	$	404.5					$	490.7
Mining,  Forestry  and  Steel  Products		81.9						-			81.9						35.3						-			35.3						71.3
Total	$	675.0					$	(261.6	)	$	413.4					$	780.7					$	(340.9	)	$	439.8					$	562.0

(a)	Amounts include effects of intercompany transactions between drilling and manufacturing operations.
(b)	Amounts exclude effects of intercompany transactions.
(c)	Amounts include corporate SG&A costs that are allocated between operating segments.
(d)	EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial measure that we believe is relevant to our stockholders.
	We measure EBITDA as operating income plus depreciation less gain on sale.

-7-