GUARANTEES OF REGISTERED SECURITIES

Rowan plc and its 100%-owned subsidiary RCI have entered into agreements providing for, among other things, the full, unconditional and irrevocable guarantee by Rowan plc of the prompt payment, when due, of any amount owed to the holders of RCI'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 (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 plc’s guarantee of the Senior Notes.

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

December 31, 2013

(in thousands)



	Rowan Companies plc (Parent)		RCI (Issuer)		Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	64,292	$	92,116	$	936,436	$	—		$	1,092,844
Receivables - trade and other	58		7,878		336,610		—			344,546
Other current assets	289		45,031		22,355		—			67,675
Assets of discontinued operations	—		23,813		—		—			23,813
Total current assets	64,639		168,838		1,295,401		—			1,528,878

Property, plant and equipment - gross	—		593,606		7,604,109		—			8,197,715
Less accumulated depreciation and amortization	—		243,666		1,568,294		—			1,811,960
Property, plant and equipment - net	—		349,940		6,035,815		—			6,385,755

Investments in subsidiaries	4,860,492		5,843,020		—		(10,703,512		)	—
Due from affiliates	136		1,439,112		579,501		(2,018,749		)	—
Other assets	—		35,071		26,057		—			61,128
	$	4,925,267	$	7,835,981	$	7,936,774	$	(12,722,261	)	$	7,975,761

CURRENT LIABILITIES:
Accounts payable - trade	$	1,359	$	13,409	$	109,208	$	—		$	123,976
Deferred revenues	—		—		54,515		—			54,515
Accrued liabilities	—		101,478		54,493		—			155,971
Liabilities of discontinued operations	—		20,122		—		—			20,122
Total current liabilities	1,359		135,009		218,216		—			354,584

Long-term debt	—		2,008,700		—		—			2,008,700
Due to affiliates	22,012		575,184		1,421,553		(2,018,749		)	—
Other liabilities	8,135		194,966		85,960		—			289,061
Deferred income taxes - net	—		126,681		302,974		—			429,655
Shareholders' equity	4,893,761		4,795,441		5,908,071		(10,703,512		)	4,893,761
	$	4,925,267	$	7,835,981	$	7,936,774	$	(12,722,261	)	$	7,975,761

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

Year ended December 31, 2013

(in thousands)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	114,673		$	1,573,111		$	(108,500	)	$	1,579,284

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			11,421			957,972			(108,500		)	860,893
Depreciation and amortization	—			39,658			231,350			—			271,008
Selling, general and administrative	28,456			3,119			99,798			—			131,373
Loss (gain) on disposals of property and equipment	—			130			(20,249		)	—			(20,119		)
Material charges and other operating expenses	—			—			4,453			—			4,453
Total costs and expenses	28,456			54,328			1,273,324			(108,500		)	1,247,608

INCOME (LOSS) FROM OPERATIONS	(28,456		)	60,345			299,787			—			331,676

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(69,794		)	(213		)	213			(69,794		)
Interest income	210			528			1,053			(213		)	1,578
Other - net	9,997			(9,915		)	(2,303		)	—			(2,221		)
Total other income (expense) - net	10,207			(79,181		)	(1,463		)	—			(70,437		)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(18,249		)	(18,836		)	298,324			—			261,239
(Benefit) provision for income taxes	—			(47,325		)	55,988			—			8,663

NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(18,249		)	28,489			242,336			—			252,576

EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX	270,825			176,494			—			(447,319		)	—

NET INCOME	$	252,576		$	204,983		$	242,336		$	(447,319	)	$	252,576

Rowan Companies plc and Subsidiaries

Condensed Consolidating Income Statements

Year ended December 31, 2012

(in thousands)



	Rowan Companies plc (Parent)			RCI (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
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 Companies plc (Parent)			RCI (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
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
Provision (benefit) 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 Statements of Comprehensive Income

Year ended December 31, 2013

(in thousands)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	252,576		$	204,983		$	242,336	$	(447,319	)	$	252,576

OTHER COMPREHENSIVE INCOME:
Pension and other postretirement benefit adjustments, net of income taxes
Net loss arising during the period	65,645			65,645			—		(65,645		)	65,645
Prior service credit arising during the period	(2,330		)	(2,330		)	—		2,330			(2,330		)
Amortization of net loss	18,495			18,495			—		(18,495		)	18,495
Amortization of transition obligation	—			—			—		—			—
Amortization of prior service credit	(3,173		)	(3,173		)	—		3,173			(3,173		)
									—
	78,637			78,637			—		(78,637		)	78,637

COMPREHENSIVE INCOME	$	331,213		$	283,620		$	242,336	$	(525,956	)	$	331,213

Rowan Companies plc and Subsidiaries

Condensed Consolidating Statements of Comprehensive Income

Year ended December 31, 2012

(in thousands)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	180,602		$	96,371		$	209,464	$	(305,835	)	$	180,602

OTHER COMPREHENSIVE INCOME:
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		)

	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

Condensed Consolidating Statements of Comprehensive Income

Year ended December 31, 2011

(in thousands)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME	$	736,841		$	731,186		$	186,983	$	(918,169	)	$	736,841

OTHER COMPREHENSIVE INCOME:
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		)

	(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

Condensed Consolidating Statements of Cash Flows

Year ended December 31, 2013

(in thousands)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(13,993	)	$	160,703		$	476,466		$	—		$	623,176

INVESTING ACTIVITIES:
Property, plant and equipment additions	—			(49,594		)	(557,717		)	—			(607,311		)
Proceeds from disposals of property, plant and equipment	—			2,432			42,118			—			44,550
Investments in consolidated subsidiaries	(100		)	(162,379		)	—			162,479			—

Net cash used in investing activities	(100		)	(209,541		)	(515,599		)	162,479			(562,761		)

FINANCING ACTIVITIES:
Advances (to) from affiliates	15,026			(90,821		)	75,795			—			—
Contributions from parent	—			—			162,479			(162,479		)	—
Excess tax benefits from share-based compensation	—			3,690			—			—			3,690
Proceeds from exercise of share options	2,911			—			—			—			2,911
Other	1,820			—			—			—			1,820

Net cash provided by (used in) financing activities	19,757			(87,131		)	238,274			(162,479		)	8,421

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	5,664			(135,969		)	199,141			—			68,836
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	58,628			228,085			737,295			—			1,024,008

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	64,292		$	92,116		$	936,436		$	—		$	1,092,844

Rowan Companies plc and Subsidiaries

Condensed Consolidating Statements of Cash Flows

Year ended December 31, 2012

(in thousands)



	Rowan Companies plc (Parent)		RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) 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 share 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 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

Condensed Consolidating Statements of Cash Flows

Year ended December 31, 2011

(in thousands)



	Rowan Companies plc (Parent)			RCI (Issuer)			Other non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) 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 ACTIVITIES:
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 share 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