This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Rowan Companies, Inc. (RDC: chart) on February 28, 2008.

Management:

- Chairman, President and Chief Executive Officer: D.F. McNease
- Vice President, Finance and Chief Financial Officer: William H. Wells
- Vice President and Investor Relations: William C. Provine

Key Investors Issues

- Revenues were up 51% from $411 million in 2006 to $624 million.
- Net income rose 122% to $139 million or $1.23 a share.
- The backlog of business currently approaches $2.5 billion.

Full Year Highlights:

- Consolidated revenue increased by 39% over 2006 to $2.1 billion. - –
- Net income increased 52% to $484 million or $4.31 a share compared to $318 million or $2.85 a share for the prior year.
- Cash and cash equivalents amounted to $285 million.

Fourth Quarter Highlights

Revenues were $623.6 million, up 51.8% from $410.9 million in 2006 due to high commodity prices, strong demand in international offshore markets, improved average day rates, and record contributions from the company’s manufacturing division.

- As a result, net income of $138.5 million or $1.23 per share, rose 122% compared to $62.4 million or 56 cents per share in 2006 and $130.8 million.
- Results included $0.7 million or less than 1 cent per share of gains on asset sales.
- Offshore rig utilization was 97%, compared to 81% in 2006 and the average offshore day rate was $164,300, up by $19,900 or 14% from 2006.

The land rig utilization was 94%, compared to 95% in 2006, though the number of rig operating days increased between periods.

- The Company''s average land rig day rate was up by $300 or 1% to $23,000 from 2006, but down by $300 or 1% sequentially. - Depreciation expense totaled $32.5 million, up 32% over last year, primarily due to rig fleet additions.
- SG&A expenses totaled $27.1 million, up by 33% over last year, primarily due to increased incentive-based compensation costs tied to the better operating results.

Segment Highlights:

- Drilling operations revenues increased by $91.8 million or 33% from 2006 to $372.4 million.
- Income from drilling operations was $170.6 million or 46% of revenues, up by 91% from the prior year and the current backlog of drilling contracts is estimated to be approximately $2.1 billion.
- The year-over-year growth resulted from land rig fleet additions and the start-up of relocated offshore rigs, and the increases in the overall average offshore day rate that followed the international expansion.
- The sequential increase primarily reflects rate increases obtained in the North Sea and Trinidad, which more than offset a slight reduction in offshore activity between periods.
- Drilling expenses were $154.6 million, an increase of 5% over the prior year due entirely to the rig fleet additions.

- Manufacturing operations generated revenues of $251.2 million, up by $120.9 million or 93% from 2006.
- Income from manufacturing operations improved to $38.3 million or 15% of revenues, up by 312% from 2006.

- Drilling products and systems revenues were $182.3 million, an increase of 125% over the prior year and 118% over the prior quarter.
- Current quarter revenues included $71.2 million of land rigs and component packages, $43.2 million recognized on 8 offshore rig kit projects, and another $18.2 million from drive and control system packages.
- The products launched generated a total of $132.6 million of revenues in the current quarter, up by $111.8 million or 538% over the prior year and by $75.1 million or 131% over the prior quarter.

- Mining, forestry, and steel product revenues were $68.9 million, an increase of 39% over both the prior year and the prior quarter.
- Current period revenues included $34.1 million from shipments of mining and forestry equipment, up by 33% over the prior year.
- Total aftermarket parts sales totaled $28.3 million, up by 34% over the prior year and the year-end manufacturing backlog included $348 million of external orders and about $1 billion related to the own jack-up new build program.

Key Achievements and Insights:

- The company’s most significant achievements focused on its commitment to meet its customers'' demand, expand its fleet, and increase its geological diversification.
- The achievements in the year focused on the firm’s continued expansion of its high specification jack-up fleet, backed up with an ambitious new build program which includes the construction of nine jack-up rigs. - In November of 2007, the company placed orders for six new jack-up rigs, two additional 240C jack-ups to be built at around Vicksburg, Mississippi shipyard, and four Super 116E class jack-ups will be built by Keppel AmFELS at their Brownsville, Texas shipyard.

It plans to position its fleet across international markets such as the Middle East, North Sea, and West Africa, allowing it to capitalize on growth in the international offshore markets and enter into long-term contracts.

- The company reported that it continues to make strategy on lowering its operating cost in the Middle East by training local personnel in the region, and is starting to see a positive turnaround in the US Gulf Mexico market, especially in the ultra deep gas sector. - The Super Gorilla class jack-up, the Bob Palmer, was reportedly undergoing final preparation for its initial ultra deep well for BP on the El Dorado prospect, and rig is contracted until June of 2009 at a day rate in the mid-220s.
- The firm expects to see a continuation of high prices during 2008 as worldwide demand for oil and gas continue to pressure supply, allowing customers to invest heavily in exploration and production, resulting in a strong demand for premium drilling equipment.