The financial information which follows reflects the organizational structure as of June 30, 2013. Financial information for the three and six months ended June 30, 2012, has been recast for the effects of an internal reorganization in the fourth quarter of 2012 and is presented as though the structure at June 30, 2013, was in place at January 1, 2012.

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

June 30, 2013

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)		RCI (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	62,730	$	340,202	$	602,966	$	—		$	1,005,898
Receivables - trade and other	234		106,410		363,655		—			470,299
Other current assets	757		61,006		25,413		—			87,176
Assets of discontinued operations	—		23,559		—		—			23,559
Total current assets	63,721		531,177		992,034		—			1,586,932

Property, plant and equipment - gross	—		1,316,176		6,571,689		—			7,887,865
Less accumulated depreciation and amortization	—		497,224		1,180,488		—			1,677,712
Property, plant and equipment - net	—		818,952		5,391,201		—			6,210,153

Investments in subsidiaries	4,652,863		5,113,475		—		(9,766,338		)	—
Due from affiliates	446		1,749,991		1,111,949		(2,862,386		)	—
Other assets	—		36,407		31,301		—			67,708
	$	4,717,030	$	8,250,002	$	7,526,485	$	(12,628,724	)	$	7,864,793

CURRENT LIABILITIES:
Accounts payable - trade	$	109	$	7,473	$	70,045	$	—		$	77,627
Deferred revenues	—		—		55,084		—			55,084
Accrued liabilities	—		64,131		36,691		—			100,822
Liabilities of discontinued operations	—		21,255		—		—			21,255
Total current liabilities	109		92,859		161,820		—			254,788

Long-term debt	—		2,009,152		—		—			2,009,152
Due to affiliates	6,359		1,111,916		1,744,111		(2,862,386		)	—
Other liabilities	7,055		320,288		74,602		—			401,945
Deferred income taxes - net	—		103,006		392,395		—			495,401
Shareholders' equity	4,703,507		4,612,781		5,153,557		(9,766,338		)	4,703,507
	$	4,717,030	$	8,250,002	$	7,526,485	$	(12,628,724	)	$	7,864,793

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

December 31, 2012

(in thousands)



	Rowan Companies plc (Parent)		RCI (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	—		4,524,480		391,008		(4,915,488		)	—
Other assets	—		37,787		37,421		—			75,208
	$	4,621,044	$	7,136,114	$	6,775,801	$	(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	—		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		4,562,016		1,355,968		(5,917,984		)	4,531,724
	$	4,621,044	$	7,136,114	$	6,775,801	$	(10,833,472	)	$	7,699,487

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended June 30, 2013

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	—		$	25,277		$	408,087		$	(24,481	)	$	408,883

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			5,991			234,534			(24,481		)	216,044
Depreciation and amortization	—			12,635			53,896			—			66,531
Selling, general and administrative	6,887			1,737			24,639			—			33,263
Loss (gain) on disposals of property and equipment	—			19			(19,241		)	—			(19,222		)
Total costs and expenses	6,887			20,382			293,828			(24,481		)	296,616

INCOME (LOSS) FROM OPERATIONS	(6,887		)	4,895			114,259			—			112,267

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(17,685		)	(30		)	30			(17,685		)
Interest income	52			160			186			(30		)	368
Other - net	2,502			(2,302		)	(643		)	—			(443		)
Total other income (expense) - net	2,554			(19,827		)	(487		)	—			(17,760		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(4,333		)	(14,932		)	113,772			—			94,507
(Benefit) provision for income taxes	—			(9,610		)	21,273			—			11,663

NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(4,333		)	(5,322		)	92,499			—			82,844

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	87,177			81,083			—			(168,260		)	—

NET INCOME	$	82,844		$	75,761		$	92,499		$	(168,260	)	$	82,844

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Three months ended June 30, 2012

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	—		$	39,375		$	344,282		$	(32,639	)	$	351,018

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	162			7,677			212,914			(32,639		)	188,114
Depreciation and amortization	—			13,791			47,539			—			61,330
Selling, general and administrative	4,034			3,881			17,183			—			25,098
Loss (gain) on disposals of property and equipment	—			1,374			(3,437		)	—			(2,063		)
Material charges and other operating expenses	8,126			(6		)	6			—			8,126
Total costs and expenses	12,322			26,717			274,205			(32,639		)	280,605

INCOME (LOSS) FROM OPERATIONS	(12,322		)	12,658			70,077			—			70,413

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(12,906		)	(87		)	—			(12,993		)
Interest income	5			98			43			—			146
Loss on debt extinguishment	—			(11,180		)	(587		)	—			(11,767		)
Other - net	2			98			(222		)	—			(122		)
Total other income (expense) - net	7			(23,890		)	(853		)	—			(24,736		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(12,315		)	(11,232		)	69,224			—			45,677
(Benefit) provision for income taxes	—			3,324			(8,495		)	—			(5,171		)

NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(12,315		)	(14,556		)	77,719			—			50,848

DISCONTINUED OPERATIONS, NET OF TAX	—			(1,413		)	—			—			(1,413		)

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	61,750			53,055			—			(114,805		)	—

NET INCOME	$	49,435		$	37,086		$	77,719		$	(114,805	)	$	49,435

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Six months ended June 30, 2013

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	—		$	59,636		$	799,606		$	(56,121	)	$	803,121

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			17,309			464,325			(56,121		)	425,513
Depreciation and amortization	—			25,276			105,871			—			131,147
Selling, general and administrative	16,099			2,451			44,144			—			62,694
Loss (gain) on disposals of property and equipment	—			229			(19,143		)	—			(18,914		)
Total costs and expenses	16,099			45,265			595,197			(56,121		)	600,440

INCOME (LOSS) FROM OPERATIONS	(16,099		)	14,371			204,409			—			202,681

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(36,266		)	(68		)	68			(36,266		)
Interest income	94			236			465			(68		)	727
Other - net	5,001			(4,770		)	(1,468		)	—			(1,237		)
Total other income (expense) - net	5,095			(40,800		)	(1,071		)	—			(36,776		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(11,004		)	(26,429		)	203,338			—			165,905
(Benefit) provision for income taxes	—			(16,998		)	31,925			—			14,927

NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(11,004		)	(9,431		)	171,413			—			150,978

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	161,982			131,330			—			(293,312		)	—

NET INCOME	$	150,978		$	121,899		$	171,413		$	(293,312	)	$	150,978

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Six months ended June 30, 2012

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

REVENUES	$	—		$	81,263		$	671,057		$	(67,825	)	$	684,495

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	162			14,289			423,627			(67,825		)	370,253
Depreciation and amortization	—			26,673			93,623			—			120,296
Selling, general and administrative	4,675			9,910			33,569			—			48,154
Loss (gain) on disposals of property and equipment	—			1,541			(3,660		)	—			(2,119		)
Material charges and other operating expenses	9,801			1,357			1,539			—			12,697
Total costs and expenses	14,638			53,770			548,698			(67,825		)	549,281

INCOME (LOSS) FROM OPERATIONS	(14,638		)	27,493			122,359			—			135,214

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(23,959		)	(291		)	—			(24,250		)
Interest income	10			141			109			—			260
Loss on debt extinguishment	—			(11,180		)	(587		)	—			(11,767		)
Other - net	2			134			1,079			—			1,215
Total other income (expense) - net	12			(34,864		)	310			—			(34,542		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(14,626		)	(7,371		)	122,669			—			100,672
(Benefit) provision for income taxes	—			5,452			(11,127		)	—			(5,675		)

NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(14,626		)	(12,823		)	133,796			—			106,347

DISCONTINUED OPERATIONS, NET OF TAX	—			(7,395		)	—			—			(7,395		)

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	113,578			103,441			—			(217,019		)	—

NET INCOME	$	98,952		$	83,223		$	133,796		$	(217,019	)	$	98,952

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended June 30, 2013

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME	$	82,844		$	75,761		$	92,499	$	(168,260	)	$	82,844

OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	4,447			4,447			—		(4,447		)	4,447
Amortization of prior service credit	(790		)	(790		)	—		790			(790		)

	3,657			3,657			—		(3,657		)	3,657

COMPREHENSIVE INCOME	$	86,501		$	79,418		$	92,499	$	(171,917	)	$	86,501

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Three months ended June 30, 2012

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME	$	49,435		$	37,086		$	77,719	$	(114,805	)	$	49,435

OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	4,087			4,087			—		(4,087		)	4,087
Amortization of transition obligation	77			77			—		(77		)	77
Amortization of prior service credit	(776		)	(776		)	—		776			(776		)

	3,388			3,388			—		(3,388		)	3,388

COMPREHENSIVE INCOME	$	52,823		$	40,474		$	77,719	$	(118,193	)	$	52,823

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Six months ended June 30, 2013

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME	$	150,978		$	121,899		$	171,413	$	(293,312	)	$	150,978

OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	8,859			8,859			—		(8,859		)	8,859
Amortization of prior service credit	(1,574		)	(1,574		)	—		1,574			(1,574		)

	7,285			7,285			—		(7,285		)	7,285

COMPREHENSIVE INCOME	$	158,263		$	129,184		$	171,413	$	(300,597	)	$	158,263

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income

Six months ended June 30, 2012

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated

NET INCOME	$	98,952		$	83,223		$	133,796	$	(217,019	)	$	98,952

OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Amortization of net loss	8,174			8,174			—		(8,174		)	8,174
Amortization of transition obligation	154			154			—		(154		)	154
Amortization of prior service credit	(1,551		)	(1,551		)	—		1,551			(1,551		)

	6,777			6,777			—		(6,777		)	6,777

COMPREHENSIVE INCOME	$	105,729		$	90,000		$	133,796	$	(223,796	)	$	105,729

Rowan Companies plc and Subsidiaries

Consolidated Statements of Cash Flows

Six months ended June 30, 2013

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(9,724	)	$	(31,349	)	$	275,405		$	—		$	234,332

INVESTING ACTIVITIES:
Property, plant and equipment additions	—			(31,984		)	(266,671		)	—			(298,655		)
Proceeds from disposals of property, plant and equipment	—			2,233			39,823			—			42,056
Investments in consolidated subsidiaries	—			(145,791		)	—			145,791			—

Net cash used in investing activities	—			(175,542		)	(226,848		)	145,791			(256,599		)

FINANCING ACTIVITIES:
Advances (to) from affiliates	9,826			318,851			(328,677		)	—			—
Contributions from parent	—			—			145,791			(145,791		)	—
Excess tax benefits from share-based compensation	—			157			—			—			157
Proceeds from exercise of share options	2,180			—			—			—			2,180
Other	1,820			—			—			—			1,820

Net cash provided by (used in) financing activities	13,826			319,008			(182,886		)	(145,791		)	4,157

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	4,102			112,117			(134,329		)	—			(18,110		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	58,628			228,085			737,295			—			1,024,008

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	62,730		$	340,202		$	602,966		$	—		$	1,005,898

Rowan Companies plc and Subsidiaries

Consolidated Statements of Cash Flows

Six months ended June 30, 2012

(in thousands)

(unaudited)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(14,565	)	$	58,243		$	210,133		$	(91,000	)	$	162,811

INVESTING ACTIVITIES:
Property, plant and equipment additions	—			(20,718		)	(270,055		)	—			(290,773		)
Proceeds from disposals of property, plant and equipment	—			5,653			3,594			—			9,247
Increase in restricted cash	—			(9,449		)	—			—			(9,449		)
Investments in consolidated subsidiaries	—			(6,669		)	—			6,669			—

Net cash used in investing activities	—			(31,183		)	(266,461		)	6,669			(290,975		)

FINANCING ACTIVITIES:
Repayments of borrowings	—			(101,602		)	(38,007		)	—			(139,609		)
Advances (to) from affiliates	9,068			(159,248		)	150,180			—			—
Contributions from parent	—			—			6,669			(6,669		)	—
Proceeds from borrowings	—			493,415			—			—			493,415
Dividends paid	—			—			(91,000		)	91,000			—
Excess tax benefits from share-based compensation	—			1,142			—			—			1,142

Net cash provided by (used in) financing activities	9,068			233,707			27,842			84,331			354,948

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(5,497		)	260,767			(28,486		)	—			226,784
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	21,472			184,677			232,704			—			438,853

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	15,975		$	445,444		$	204,218		$	—		$	665,637