Guarantees of Registered Securities

RCI, a 100%-owned Delaware subsidiary of Rowan plc, is the issuer of all of our publicly traded debt securities consisting of the following series: 5% Senior Notes due 2017; 7.875% Senior Notes due 2019; 4.875% Senior Notes due 2022; 4.75% Senior Notes due 2024; 5.4% Senior Notes due 2042; and 5.85% Senior Notes due 2044 (the “Senior Notes”). The Senior Notes and amounts outstanding under our revolving credit facility are guaranteed by Rowan plc on a full, unconditional and irrevocable basis.

The condensed consolidating financial information that follows 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

September 30, 2016

(In millions)

(Unaudited)



	Rowan plc (Parent)		RCI (Issuer)		Non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	5.1	$	359.8	$	672.6	$	—		$	1,037.5
Receivables - trade and other	—		1.3		439.2		—			440.5
Prepaid expenses and other current assets	0.5		18.4		9.7		—			28.6
Total current assets	5.6		379.5		1,121.5		—			1,506.6

Property and equipment - gross	—		616.5		8,473.9		—			9,090.4
Less accumulated depreciation and amortization	—		264.6		1,682.5		—			1,947.1
Property and equipment - net	—		351.9		6,791.4		—			7,143.3

Investments in subsidiaries	5,155.9		6,186.8		—		(11,342.7		)	—
Due from affiliates	0.7		578.9		58.2		(637.8		)	—
Other assets	—		4.8		10.3		—			15.1
	$	5,162.2	$	7,501.9	$	7,981.4	$	(11,980.5	)	$	8,665.0

CURRENT LIABILITIES:
Current portion of long-term debt	$	—	$	357.1	$	—	$	—		$	357.1
Accounts payable - trade	0.6		18.9		62.7		—			82.2
Deferred revenues	—		—		78.4		—			78.4
Accrued liabilities	0.3		90.1		69.7		—			160.1
Total current liabilities	0.9		466.1		210.8		—			677.8

Long-term debt, less current portion	—		2,288.5		—		—			2,288.5
Due to affiliates	0.1		59.1		578.6		(637.8		)	—
Other liabilities	4.0		277.2		75.5		—			356.7
Deferred income taxes - net	—		540.3		144.0		(499.5		)	184.8
Shareholders' equity	5,157.2		3,870.7		6,972.5		(10,843.2		)	5,157.2
	$	5,162.2	$	7,501.9	$	7,981.4	$	(11,980.5	)	$	8,665.0

Rowan Companies plc and Subsidiaries

Condensed Consolidating Balance Sheets

December 31, 2015

(In millions)



	Rowan plc (Parent)		RCI (Issuer)		Non-guarantor subsidiaries		Consolidating adjustments			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	17.3	$	9.5	$	457.4	$	—		$	484.2
Receivables - trade and other	0.1		1.4		409.0		—			410.5
Prepaid expenses and other current assets	0.4		19.3		6.9		—			26.6
Total current assets	17.8		30.2		873.3		—			921.3

Property and equipment - gross	—		592.8		8,475.3		—			9,068.1
Less accumulated depreciation and amortization	—		242.7		1,419.6		—			1,662.3
Property and equipment - net	—		350.1		7,055.7		—			7,405.8

Investments in subsidiaries	4,763.3		6,028.2		—		(10,791.5		)	—
Due from affiliates	0.6		1,218.2		55.8		(1,274.6		)	—
Other assets	—		5.0		15.2		—			20.2
	$	4,781.7	$	7,631.7	$	8,000.0	$	(12,066.1	)	$	8,347.3

CURRENT LIABILITIES:
Accounts payable - trade	$	1.0	$	19.1	$	89.5	$	—		$	109.6
Deferred revenues	—		—		33.1		—			33.1
Accrued liabilities	0.7		119.4		65.9		—			186.0
Total current liabilities	1.7		138.5		188.5		—			328.7

Long-term debt, less current portion	—		2,692.4		—		—			2,692.4
Due to affiliates	2.9		55.8		1,215.9		(1,274.6		)	—
Other liabilities	4.6		304.7		48.6		—			357.9
Deferred income taxes - net	—		522.9		150.8		(477.9		)	195.8
Shareholders' equity	4,772.5		3,917.4		6,396.2		(10,313.6		)	4,772.5
	$	4,781.7	$	7,631.7	$	8,000.0	$	(12,066.1	)	$	8,347.3

Rowan Companies plc and Subsidiaries

Condensed Consolidating Statements of Operations

Three months ended September 30, 2016

(In millions)

(Unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	5.4		$	378.5		$	(4.5	)	$	379.4

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			(2.0		)	191.3			(3.3		)	186.0
Depreciation and amortization	—			5.3			96.7			0.2			102.2
Selling, general and administrative	5.7			—			19.2			(1.4		)	23.5
Loss on disposals of property and equipment	—			0.5			0.7			—			1.2
Material charges and other operating items	—			—			32.9			—			32.9
Total costs and expenses	5.7			3.8			340.8			(4.5		)	345.8

INCOME (LOSS) FROM OPERATIONS	(5.7		)	1.6			37.7			—			33.6

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(39.4		)	(0.6		)	0.6			(39.4		)
Interest income	—			1.0			0.8			(0.6		)	1.2
Other - net	5.4			(5.4		)	(2.1		)	—			(2.1		)
Total other income (expense), net	5.4			(43.8		)	(1.9		)	—			(40.3		)

INCOME (LOSS) BEFORE INCOME TAXES	(0.3		)	(42.2		)	35.8			—			(6.7		)
Benefit for income taxes	—			(2.9		)	(5.2		)	(4.1		)	(12.2		)
Equity in earnings of subsidiaries, net of tax	5.8			(158.1		)	—			152.3			—

NET INCOME (LOSS)	$	5.5		$	(197.4	)	$	41.0		$	156.4		$	5.5

Rowan Companies plc and Subsidiaries

Condensed Consolidating Statements of Operations

Three months ended September 30, 2015

(In millions)

(Unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	15.9		$	543.5		$	(14.0	)	$	545.4

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			1.0			259.4			(12.8		)	247.6
Depreciation and amortization	—			6.8			97.2			0.1			104.1
Selling, general and administrative	5.5			(1.8		)	27.3			(1.3		)	29.7
Loss on disposals of property and equipment	—			0.5			1.8			—			2.3
Material charges and other operating items	—			—			332.3			—			332.3
Total costs and expenses	5.5			6.5			718.0			(14.0		)	716.0

INCOME (LOSS) FROM OPERATIONS	(5.5		)	9.4			(174.5		)	—			(170.6		)

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(41.3		)	(14.0		)	14.0			(41.3		)
Interest income	0.6			13.1			0.5			(14.0		)	0.2
Other - net	5.6			(5.7		)	(1.7		)	—			(1.8		)
Total other income (expense), net	6.2			(33.9		)	(15.2		)	—			(42.9		)

INCOME (LOSS) BEFORE INCOME TAXES	0.7			(24.5		)	(189.7		)	—			(213.5		)
Provision (benefit) for income taxes	—			24.8			(11.8		)	12.9			25.9
Equity in earnings of subsidiaries, net of tax	(240.1		)	(182.1		)	—			422.2			—

NET LOSS	$	(239.4	)	$	(231.4	)	$	(177.9	)	$	409.3		$	(239.4	)

Rowan Companies plc and Subsidiaries

Condensed Consolidating Statements of Operations

Nine months ended September 30, 2016

(In millions)

(Unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	41.3		$	1,488.0		$	(37.9	)	$	1,491.4

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			5.2			627.0			(33.9		)	598.3
Depreciation and amortization	—			14.0			286.5			0.7			301.2
Selling, general and administrative	19.5			—			61.7			(4.7		)	76.5
Loss on disposals of property and equipment	—			0.6			4.7			—			5.3
Material charges and other operating items	—			—			32.9			—			32.9
Total costs and expenses	19.5			19.8			1,012.8			(37.9		)	1,014.2

INCOME (LOSS) FROM OPERATIONS	(19.5		)	21.5			475.2			—			477.2

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(116.6		)	(3.7		)	3.7			(116.6		)
Interest income	—			4.2			1.6			(3.7		)	2.1
Gain on extinguishment of debt	—			2.4			—			—			2.4
Other - net	15.8			(15.8		)	(5.4		)	—			(5.4		)
Total other income (expense), net	15.8			(125.8		)	(7.5		)	—			(117.5		)

INCOME (LOSS) BEFORE INCOME TAXES	(3.7		)	(104.3		)	467.7			—			359.7
Provision for income taxes	—			19.3			17.3			(21.9		)	14.7
Equity in earnings of subsidiaries, net of tax	348.7			30.8			—			(379.5		)	—

NET INCOME (LOSS)	$	345.0		$	(92.8	)	$	450.4		$	(357.6	)	$	345.0

Rowan Companies plc and Subsidiaries

Condensed Consolidating Statements of Operations

Nine months ended September 30, 2015

(In millions)

(Unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated
REVENUES	$	—		$	49.2		$	1,600.0		$	(48.0	)	$	1,601.2

COSTS AND EXPENSES:
Direct operating costs (excluding items below)	—			5.8			796.0			(44.5		)	757.3
Depreciation and amortization	—			14.8			273.6			0.8			289.2
Selling, general and administrative	16.7			0.3			75.7			(4.3		)	88.4
Loss on disposals of property and equipment	—			0.5			1.6			—			2.1
Material charges and other operating items	—			—			337.3			—			337.3
Total costs and expenses	16.7			21.4			1,484.2			(48.0		)	1,474.3

INCOME (LOSS) FROM OPERATIONS	(16.7		)	27.8			115.8			—			126.9

OTHER INCOME (EXPENSE):
Interest expense, net of interest capitalized	—			(104.9		)	(20.5		)	20.5			(104.9		)
Interest income	0.8			19.7			0.8			(20.5		)	0.8
Other - net	16.8			(16.8		)	(2.9		)	—			(2.9		)
Total other income (expense), net	17.6			(102.0		)	(22.6		)	—			(107.0		)

INCOME (LOSS) BEFORE INCOME TAXES	0.9			(74.2		)	93.2			—			19.9
Provision for income taxes	—			27.2			30.5			(6.8		)	50.9
Equity in earnings of subsidiaries, net of tax	(31.9		)	(158.6		)	—			190.5			—

NET INCOME (LOSS)	$	(31.0	)	$	(260.0	)	$	62.7		$	197.3		$	(31.0	)

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income (Loss)

Three months ended September 30, 2016

(In millions)

(Unaudited)



	Rowan plc (Parent)		RCI (Issuer)			Non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME (LOSS)	$	5.5	$	(197.4	)	$	41.0	$	156.4		$	5.5

OTHER COMPREHENSIVE INCOME:
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes	19.2		19.2			—		(19.2		)	19.2
Net reclassification adjustments for amount recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes	1.0		1.0			—		(1.0		)	1.0

	20.2		20.2			—		(20.2		)	20.2

COMPREHENSIVE INCOME (LOSS)	$	25.7	$	(177.2	)	$	41.0	$	136.2		$	25.7

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income (Loss)

Three months ended September 30, 2015

(In millions)

(Unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET LOSS	$	(239.4	)	$	(231.4	)	$	(177.9	)	$	409.3		$	(239.4	)

OTHER COMPREHENSIVE INCOME:
Net reclassification adjustments for amount recognized in net loss as a component of net periodic benefit cost, net of income taxes	3.4			3.4			—			(3.4		)	3.4

COMPREHENSIVE LOSS	$	(236.0	)	$	(228.0	)	$	(177.9	)	$	405.9		$	(236.0	)

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income (Loss)

Nine months ended September 30, 2016

(In millions)

(Unaudited)



	Rowan plc (Parent)		RCI (Issuer)			Non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME (LOSS)	$	345.0	$	(92.8	)	$	450.4	$	(357.6	)	$	345.0

OTHER COMPREHENSIVE INCOME:
Net changes in pension and other postretirement plan assets and benefit obligations recognized in other comprehensive income, net of income taxes	19.2		19.2			—		(19.2		)	19.2
Net reclassification adjustments for amount recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes	6.0		6.0			—		(6.0		)	6.0

	25.2		25.2			—		(25.2		)	25.2

COMPREHENSIVE INCOME (LOSS)	$	370.2	$	(67.6	)	$	450.4	$	(382.8	)	$	370.2

Rowan Companies plc and Subsidiaries

Statements of Comprehensive Income (Loss)

Nine months ended September 30, 2015

(In millions)

(Unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries		Consolidating adjustments			Consolidated
NET INCOME (LOSS)	$	(31.0	)	$	(260.0	)	$	62.7	$	197.3		$	(31.0	)

OTHER COMPREHENSIVE INCOME:
Net reclassification adjustments for amount recognized in net income (loss) as a component of net periodic benefit cost, net of income taxes	10.2			10.2			—		(10.2		)	10.2

COMPREHENSIVE INCOME (LOSS)	$	(20.8	)	$	(249.8	)	$	62.7	$	187.1		$	(20.8	)

Rowan Companies plc and Subsidiaries

Condensed Consolidating Statements of Cash Flows

Nine months ended September 30, 2016

(In millions)

(Unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(9.2	)	$	(27.8	)	$	804.1		$	(78.5	)	$	688.6

INVESTING ACTIVITIES:
Capital expenditures	—			(31.2		)	(57.3		)	—			(88.5		)
Proceeds from disposals of property and equipment	—			0.4			0.7			—			1.1
Collections on subsidiary notes receivables	—			580.8			—			(580.8		)	—
Investments in consolidated subsidiaries	(0.2		)	(204.6		)	—			204.8			—

Net cash provided by (used in) investing activities	(0.2		)	345.4			(56.6		)	(376.0		)	(87.4		)

FINANCING ACTIVITIES:
Advances (to) from affiliates	(2.8		)	80.6			(76.6		)	(1.2		)	—
Contributions from parent/issuer	—			—			204.8			(204.8		)	—
Reductions of long-term debt	—			(47.9		)	(580.8		)	580.8			(47.9		)
Dividends paid	—			—			(79.7		)	79.7			—

Net cash provided by (used in) financing activities	(2.8		)	32.7			(532.3		)	454.5			(47.9		)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(12.2		)	350.3			215.2			—			553.3
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	17.3			9.5			457.4			—			484.2

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	5.1		$	359.8		$	672.6		$	—		$	1,037.5

Rowan Companies plc and Subsidiaries

Condensed Consolidating Statements of Cash Flows

Nine months ended September 30, 2015

(In millions)

(Unaudited)



	Rowan plc (Parent)			RCI (Issuer)			Non-guarantor subsidiaries			Consolidating adjustments			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(3.7	)	$	22.6		$	687.5		$	(47.5	)	$	658.9

INVESTING ACTIVITIES:
Capital expenditures	—			(14.8		)	(660.0		)	—			(674.8		)
Proceeds from disposals of property and equipment	—			2.8			2.3			—			5.1
Advances on subsidiary notes receivables	—			(481.3		)	—			481.3			—
Collections on subsidiary notes receivables	7.0			434.2			—			(441.2		)	—
Investments in consolidated subsidiaries	—			(36.7		)	—			36.7			—

Net cash provided by (used in) investing activities	7.0			(95.8		)	(657.7		)	76.8			(669.7		)

FINANCING ACTIVITIES:
Advances (to) from affiliates	(10.5		)	42.8			(30.8		)	(1.5		)	—
Contributions from issuer	—			—			36.7			(36.7		)	—
Proceeds from borrowings	—			220.0			481.3			(481.3		)	220.0
Reductions of long-term debt	—			(220.0		)	(441.2		)	441.2			(220.0		)
Dividends paid	(37.9		)	—			(49.0		)	49.0			(37.9		)

Net cash provided by (used in) financing activities	(48.4		)	42.8			(3.0		)	(29.3		)	(37.9		)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(45.1		)	(30.4		)	26.8			—			(48.7		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	45.9			48.6			244.7			—			339.2

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	0.8		$	18.2		$	271.5		$	—		$	290.5