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