HOUSTON, July 20, 2015 /PRNewswire/ — Rowan Companies plc (“Rowan” or the “Company”) (NYSE: RDC) announced today that its report of drilling rig status and contract information has been updated as of July 20, 2015. The report titled “Fleet Status Report” can be found on the Company’s website at www.rowan.com.
Notable events in the current report include:
- Rowan Relentless: Rig commenced operations with Freeport-McMoRan in the U.S. Gulf of Mexico on June 16, 2015. This completes Rowan’s ultra-deepwater newbuild campaign in which all four drillships were delivered on budget and ahead of schedule.
- Rowan Renaissance: Rig is currently mobilizing to the U.S. Gulf of Mexico from West Africa at a reduced day rate and is expected to commence operations in September 2015.
- Rowan Reliance: Rig is currently drilling North Platte #3 for Cobalt after plugging and abandoning North Platte #2 on April 6, 2015. Rowan and Cobalt are working toward a resolution that may include certain days at zero or reduced day rate.
- Rowan Gorilla VII: Awarded a contract extension to December 2016 with Apache at a 2015-2016 blended day rate of $181,000 with a four-month priced option to follow at the same rate.
- Rowan Gorilla III: Rig is expected to become available in mid-August 2015 due to early termination of the contract. Revenue for balance of contract term (January 2016) is expected to be recognized in 3Q 2015.
- Rowan Middletown, Charles Rowan and Arch Rowan: Each rig was awarded contract extensions to August 2015 with Saudi Aramco at their current day rates.
- Rowan Gorilla IV: Awarded a multiple-well contract with a total estimated duration of 90 days with Energy XXI at a day rate of $70,000.
- Joe Douglas: Awarded a one-well contract estimated at 45 days to August 2015 with Rooster Energy at a day rate of $52,500. Additional revenue may be earned based on rig and well performance. Following the Rooster Energy contract, the rig will mobilize to Trinidad for BHP with operations expected to commence in October 2015.
- Rowan Alaska and Rowan Juneau: The rigs have been retired from service as drilling units effective July 1, 2015. Rowan has entered into contracts for sale of the rigs with an expected closing by the end of July 2015. The sale agreements prohibit their future use as drilling units.
The Company continues to estimate planned out-of-service time for the second quarter and full-year of 2015 to range from 3% to 6% for its jack-ups and drillships, subject to fleet repositioning and market conditions.
No operational downtime is included in projected out-of-service days, but the Company estimates jack-up operational downtime to account for approximately 2.5% of in-service days in current and future quarters. Rowan continues to expect drillship operational downtime to be approximately 5% after a break-in period of approximately six months up to one year (during which drillship operational downtime will likely be higher).
Out-of-service days are days where a rig is (or is planned to be) out-of-service and is not able to earn revenue. The Company may be compensated for certain out-of-service days such as shipyard stays or transit periods preceding a contract. However, any such compensation is deferred and recognized over the period of drilling operations. Operational downtime is when a rig is under contract and unable to conduct planned operations due to equipment breakdowns or procedural failures.
Unless otherwise indicated, all day rates on the fleet status include estimated amortization of contract mobilization/modification revenues. However, day rates exclude approximately $20 to $30 million of other miscellaneous aggregate annual revenue the Company receives during rig operations (or approximately $5 to $8 million per quarter). Day rates also exclude rebillable revenues which are equally offset by drilling expenses.
This summary is provided as a courtesy and is not intended to replace a detailed review of the Fleet Status Report. While the Company has attempted to include items it believes are significant, we encourage you to review the Fleet Status Report in detail.
Rowan is a global provider of contract drilling services with a fleet of 32 offshore drilling units, including four ultra-deepwater drillships and 28 jack-up rigs, 19 of which are rated high-specification. The Company’s fleet operates worldwide, including the United Kingdom and Norwegian sectors of the North Sea, the Middle East, Southeast Asia, the United States Gulf of Mexico and Trinidad. The Company’s Class A Ordinary Shares are traded on the New York Stock Exchange under the symbol “RDC.” For more information on the Company, please visit www.rowan.com.
Forward Looking Statements
Statements herein that are not historical facts are 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 business, financial performance and prospects of the Company. These forward-looking statements are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. 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, variations in energy demand, changes in day rates, cancellation by our customers of drilling contracts, letter agreements or letters of intent or the exercise of early termination provisions, risks associated with fixed cost drilling operations, cost overruns or delays on shipyard repair, construction or transportation of drilling units, maintenance and repair costs, costs or delays for conversion or upgrade projects, operating hazards and equipment failure, risks of collision and damage, casualty losses and limitations on insurance coverage, customer credit and risk of customer bankruptcy, conditions in the general economy and energy industry, weather conditions and severe weather in the Company’s operating areas, increasing complexity and costs of compliance with environmental and other laws and regulations, changes in tax laws and interpretations by taxing authorities, civil unrest and instability, terrorism and hostilities in our areas of operations that may result in loss or seizure of assets, the outcome of disputes and legal proceedings, effects of the change in our corporate structure, and other risks disclosed in the Company’s filings with the U.S. Securities and Exchange Commission. Each forward-looking statement speaks only as of the date hereof, and the Company expressly disclaims any obligation to update or revise any forward-looking statements, except as required by law.
SOURCE Rowan Companies plc