Cameron to Acquire LeTourneau Technologies Drilling Systems

- Cameron to Acquire LeTourneau Technologies Drilling Systems

Wednesday, August 31, 2011
Cameron

Cameron has agreed to acquire LeTourneau Technologies Drillings Systems and Offshore Products divisions from Joy Global for approximately $375 million in cash. The boards of Cameron and Joy Global Inc. have unanimously approved the transaction, which is subject to customary closing conditions. Closing is scheduled during the 4th quarter of 2011.

LeTourneau is a well established provider of drilling equipment and rig designs and components for both the land and offshore rig markets. LeTourneau's products include elevating systems, skidding systems, cranes, top drives, rotary tables, draw works, mud pumps and rig control and power systems.

"The addition of LeTourneau's portfolio of drilling equipment and rig components adds to our existing products offering and enhances the growth opportunities for our drilling systems platform", said Jack Moore, Chairman and CEO of Cameron. "We welcome the LeTourneau team to the Cameron family and look forward to providing our customers and theirs with a greater suite of products and services." Moore further stated that this acquisition is expected to be accretive to Cameron's 2012 earnings.

Credit Suisse Securities (USA) LLC advised Cameron in connection with the transaction. Porter Hedges LLP are serving as legal advisor.

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Rowan 2Q Earnings Jump on LeTourneau Sale

- Rowan 2Q Earnings Jump on LeTourneau Sale

Tuesday, August 02, 2011
Rowan Companies Inc.

For the three months ended June 30, 2011, Rowan Companies, generated net income from continuing operations of $44.4 million or $0.35 per share, compared to $83.4 million or $0.73 per share in the second quarter of 2010.

Income from continuing operations during the second quarter of 2011 included a $6.1 million pre-tax charge related to litigation settlement and $1.4 million of gains on asset disposals, for a net reduction of $4.7 million or $0.03 per share after tax. The second quarter 2010 results included a $4.5 million pre-tax charge for the expected cost to terminate the Company's agency agreement in Mexico, or $0.02 per share after tax.

Income from discontinued manufacturing and land drilling operations totaled $421.5 million in the second quarter of 2011 or $3.30 per share, including the after-tax gain on the sale of LeTourneau of $424.5 million, compared to $7.5 million or $0.07 per share in the second quarter of 2010. The after-tax cash proceeds from the sale of LeTourneau are estimated to be approximately $865 million.

Net income totaled $465.9 million or $3.65 per share in the second quarter of 2011, compared to $90.9 million or $0.79 per share in the second quarter of 2010.

Rowan's offshore drilling revenues were $223.5 million in the second quarter of 2011, compared to $282.2 million in the second quarter of 2010, as the impact of lower average day rates more than offset higher activity resulting from rig fleet additions between periods. The Company's gross offshore drilling margin was 53% of revenues in the second quarter of 2011, down from 63% in the prior-year quarter.

Matt Ralls, President and Chief Executive Officer, commented, "Over the past three months, we made substantial progress on several strategic fronts. We completed the sale of our manufacturing business and reached an agreement to sell our land drilling division, enabling us to focus exclusively on our core offshore drilling business. We significantly expanded the future growth prospects of that business by ordering two ultra-deepwater drillships that we believe will be the most capable in the global fleet upon delivery. Our first two N-class jack-up rigs commenced operations in the North Sea in June and we achieved our objective of entering the important Southeast Asia market with commitments starting later this year in Malaysia and Vietnam – Rowan's first work in that area in almost two decades. Further, over the past three months we increased our backlog of drilling revenue commitments by 67% to $2.6 billion.

"Our financial performance during the second quarter was significantly impacted by the effects of rig start-ups, several of which have occurred or will occur later than we expected due largely to delays related to more rigorous customer acceptance tests and regulatory approval processes and civil unrest in the Middle East."

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Rowan Redirects Focus on Offshore Drilling with $1.1B Sale of LeTourneau

Rowan Redirects Focus on Offshore Drilling with $1.1B Sale of LeTourneau

Monday, May 16, 2011
Rowan Companies Inc.

Rowan Companies has entered into a share purchase agreement (the "Agreement") with Joy Global to sell all shares of common stock held by Rowan in LeTourneau Technologies for $1.1 billion in cash. The Agreement is subject only to regulatory approval, which the Company expects to obtain within 60 days.

Matt Ralls, President and Chief Executive Officer, commented, "We are pleased to enter into this agreement with Joy to monetize our investment in LeTourneau. This transaction is consistent with our stated strategy to separate non-core businesses, and we expect that most of the after-tax proceeds, estimated at approximately $875 million, will ultimately be redeployed into our offshore drilling business, either through continued growth of our high-spec jack-up fleet or expansion into the ultra-deepwater drilling segment.

"We also expect this transaction to create additional opportunities for LeTourneau and its employees, who will become part of an organization that is focused on manufacturing and will continue to encourage further innovations in both the mining equipment and drilling systems businesses. I want to personally thank the LeTourneau management team for the many organizational and operational improvements they have made in the company and their invaluable assistance in reaching an agreement with Joy. I likewise want to thank all of the LeTourneau employees for their dedication and service over the years as part of the Rowan family."

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