Delaware
|
75-0759420
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
2800 Post Oak Boulevard, Suite
5450 Houston, Texas
|
77056
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Page
|
|
1
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3
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4
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14
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28
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28
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28
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28
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28
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29
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30
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September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 681,107 | $ | 222,428 | ||||
Receivables
- trade and other
|
361,167 | 484,962 | ||||||
Inventories
- at cost:
|
||||||||
Raw
materials and supplies
|
318,244 | 337,503 | ||||||
Work-in-progress
|
161,826 | 213,177 | ||||||
Finished
goods
|
715 | 749 | ||||||
Prepaid
expenses and other current assets
|
84,195 | 59,466 | ||||||
Deferred
tax assets - net
|
43,647 | 50,902 | ||||||
Total
current assets
|
1,650,901 | 1,369,187 | ||||||
PROPERTY,
PLANT AND EQUIPMENT - at cost:
|
||||||||
Drilling
equipment
|
3,674,265 | 3,503,590 | ||||||
Manufacturing
plant and equipment
|
250,107 | 249,725 | ||||||
Construction
in progress
|
653,125 | 425,182 | ||||||
Other
property and equipment
|
140,349 | 126,915 | ||||||
Property,
plant and equipment - gross
|
4,717,846 | 4,305,412 | ||||||
Less
accumulated depreciation and amortization
|
1,277,839 | 1,157,884 | ||||||
Property, plant and
equipment - net
|
3,440,007 | 3,147,528 | ||||||
Other
assets
|
91,674 | 32,177 | ||||||
TOTAL
ASSETS
|
$ | 5,182,582 | $ | 4,548,892 | ||||
See
Notes to Unaudited Condensed Consolidated Financial
Statements.
|
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Current
maturities of long-term debt
|
$ | 64,922 | $ | 64,922 | ||||
Accounts
payable - trade
|
118,275 | 235,048 | ||||||
Deferred
revenues
|
156,753 | 174,086 | ||||||
Billings
in excess of costs and estimated profits on uncompleted
contracts
|
40,684 | 57,119 | ||||||
Accrued
compensation and related employee costs
|
60,613 | 108,060 | ||||||
Accrued
income taxes
|
1,479 | 58,317 | ||||||
Other
current liabilities
|
49,377 | 47,090 | ||||||
Total
current liabilities
|
492,103 | 744,642 | ||||||
Long-term
debt - less current maturities
|
801,162 | 355,560 | ||||||
Other
liabilities
|
427,115 | 362,026 | ||||||
Deferred
income taxes - net
|
490,135 | 426,848 | ||||||
Commitments
and contingent liabilities (Notes 8 and 9)
|
- | - | ||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Preferred
stock, $1.00 par value, authorized 5,000,000 shares, issuable in
series:
|
||||||||
Series
C Preferred Stock, authorized 9,606 shares, none
outstanding
|
- | - | ||||||
Series
A Junior Preferred Stock, authorized 1,500,000 shares, none
issued
|
- | - | ||||||
Common
stock, $0.125 par value, authorized 150,000,000 shares; issued 113,860,569
shares at September 30, 2009, and 113,115,830 shares at December 31,
2008
|
14,233 | 14,141 | ||||||
Additional
paid-in capital
|
1,069,106 | 1,063,202 | ||||||
Retained
earnings
|
2,108,697 | 1,802,022 | ||||||
Cost
of 109,623 and 79,948 treasury shares, respectively
|
(2,953 | ) | (2,533 | ) | ||||
Accumulated
other comprehensive loss
|
(217,016 | ) | (217,016 | ) | ||||
Total
stockholders' equity
|
2,972,067 | 2,659,816 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 5,182,582 | $ | 4,548,892 | ||||
See
Notes to Unaudited Condensed Consolidated Financial
Statements.
|
For
The Three Months
|
For
The Nine Months
|
|||||||||||||||
Ended
September 30,
|
Ended
September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
REVENUES:
|
||||||||||||||||
Drilling
services
|
$ | 258,394 | $ | 357,143 | $ | 959,571 | $ | 1,064,944 | ||||||||
Manufacturing
sales and services
|
135,027 | 169,915 | 410,818 | 534,745 | ||||||||||||
Total
revenues
|
393,421 | 527,058 | 1,370,389 | 1,599,689 | ||||||||||||
COSTS
AND EXPENSES:
|
||||||||||||||||
Drilling
services (excluding items below)
|
121,238 | 163,330 | 403,459 | 483,107 | ||||||||||||
Manufacturing
sales and services (excluding items below)
|
116,949 | 149,174 | 355,145 | 454,755 | ||||||||||||
Depreciation
and amortization
|
43,747 | 36,230 | 126,855 | 102,782 | ||||||||||||
Selling,
general and administrative
|
24,094 | 27,595 | 73,390 | 85,767 | ||||||||||||
Loss
(gain) on disposals of property and equipment
|
305 | (21,447 | ) | (4,336 | ) | (28,329 | ) | |||||||||
Total
costs and expenses
|
306,333 | 354,882 | 954,513 | 1,098,082 | ||||||||||||
INCOME
FROM OPERATIONS
|
87,088 | 172,176 | 415,876 | 501,607 | ||||||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||
Interest
expense
|
(10,810 | ) | (4,456 | ) | (16,410 | ) | (14,351 | ) | ||||||||
Less
interest capitalized
|
7,348 | 4,456 | 12,455 | 13,624 | ||||||||||||
Interest
income
|
441 | 1,081 | 973 | 5,445 | ||||||||||||
Other
- net
|
2,303 | (1,924 | ) | 6,139 | (680 | ) | ||||||||||
Total
other income (expense) - net
|
(718 | ) | (843 | ) | 3,157 | 4,038 | ||||||||||
INCOME
BEFORE INCOME TAXES
|
86,370 | 171,333 | 419,033 | 505,645 | ||||||||||||
Provision
for income taxes
|
7,978 | 57,219 | 112,358 | 172,298 | ||||||||||||
NET
INCOME
|
$ | 78,392 | $ | 114,114 | $ | 306,675 | $ | 333,347 | ||||||||
PER
SHARE AMOUNTS:
|
||||||||||||||||
Net
income - basic
|
$ | .69 | $ | 1.01 | $ | 2.70 | $ | 2.96 | ||||||||
Net
income - diluted
|
$ | .69 | $ | 1.00 | $ | 2.70 | $ | 2.94 | ||||||||
See
Notes to Unaudited Condensed Consolidated Financial
Statements.
|
For
the Nine Months
|
||||||||
Ended
September 30,
|
||||||||
2009
|
2008
|
|||||||
CASH
PROVIDED BY (USED IN):
|
||||||||
Operations:
|
||||||||
Net
income
|
$ | 306,675 | $ | 333,347 | ||||
Adjustments
to reconcile net income to net cash provided by
operations:
|
||||||||
Depreciation
and amortization
|
126,855 | 102,782 | ||||||
Deferred
income taxes
|
70,542 | 38,004 | ||||||
Provision
for pension and postretirement benefits
|
32,148 | 24,321 | ||||||
Stock-based
compensation expense
|
9,571 | 10,330 | ||||||
Postretirement
benefit claims paid
|
(2,689 | ) | (2,084 | ) | ||||
Gain
on disposals of property, plant and equipment
|
(4,336 | ) | (28,329 | ) | ||||
Estimated
net benefits from income tax claims
|
(25,057 | ) | - | |||||
Contributions
to pension plans
|
(34,487 | ) | (23,576 | ) | ||||
Changes
in current assets and liabilities:
|
||||||||
Receivables
- trade and other
|
129,815 | 61,062 | ||||||
Inventories
|
65,578 | (143,848 | ) | |||||
Prepaid
expenses and other current assets
|
(24,729 | ) | (4,503 | ) | ||||
Accounts
payable
|
(130,778 | ) | 72,091 | |||||
Accrued
income taxes
|
(56,838 | ) | (18,369 | ) | ||||
Deferred
revenues
|
(17,333 | ) | 66,625 | |||||
Billings
in excess of costs and estimated profits on uncompleted
contracts
|
(16,435 | ) | (59,701 | ) | ||||
Other
current liabilities
|
(11,348 | ) | 8,988 | |||||
Net
changes in other noncurrent assets and liabilities
|
(8,191 | ) | (3,556 | ) | ||||
Net
cash provided by operations
|
408,963 | 433,584 | ||||||
Investing
activities:
|
||||||||
Capital
expenditures
|
(393,223 | ) | (618,541 | ) | ||||
Proceeds
from disposals of property, plant and equipment
|
5,689 | 53,455 | ||||||
Change
in restricted cash balance
|
- | 50,000 | ||||||
Net
cash used in investing activities
|
(387,534 | ) | (515,086 | ) | ||||
Financing
activities:
|
||||||||
Proceeds
from borrowings, net of issue costs
|
491,729 | 80,000 | ||||||
Repayments
of borrowings
|
(51,168 | ) | (131,168 | ) | ||||
Payment
of cash dividends
|
- | (33,713 | ) | |||||
Excess
tax benefits from stock-based compensation
|
(3,562 | ) | 1,999 | |||||
Proceeds
from stock option and convertible debenture plans and
other
|
251 | 32,646 | ||||||
Net
cash provided by (used in) financing activities
|
437,250 | (50,236 | ) | |||||
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
458,679 | (131,738 | ) | |||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
222,428 | 284,458 | ||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 681,107 | $ | 152,720 | ||||
See
Notes to Unaudited Condensed Consolidated Financial
Statements.
|
Three
Months
|
Nine
Months
|
|||||||||||||||
Ended
September 30,
|
Ended
September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Revenues:
|
||||||||||||||||
Drilling
Services
|
$ | 258.4 | $ | 357.1 | $ | 959.6 | $ | 1,064.9 | ||||||||
Manufacturing:
|
||||||||||||||||
Drilling
Products and Systems
|
177.6 | 189.4 | 464.0 | 618.4 | ||||||||||||
Mining,
Forestry and Steel Products
|
41.5 | 59.0 | 139.5 | 174.5 | ||||||||||||
Eliminations
|
(84.1 | ) | (78.4 | ) | (192.7 | ) | (258.1 | ) | ||||||||
Total
Manufacturing
|
135.0 | 170.0 | 410.8 | 534.8 | ||||||||||||
Total
revenues from external customers
|
$ | 393.4 | $ | 527.1 | $ | 1,370.4 | $ | 1,599.7 | ||||||||
Income
from operations:
|
||||||||||||||||
Drilling
Services
|
$ | 81.1 | $ | 166.9 | $ | 396.1 | $ | 468.5 | ||||||||
Manufacturing:
|
||||||||||||||||
Drilling
Products and Systems
|
29.5 | 12.8 | 59.7 | 66.5 | ||||||||||||
Mining,
Forestry and Steel Products
|
4.9 | 7.3 | 18.9 | 16.1 | ||||||||||||
Eliminations
|
(28.4 | ) | (14.8 | ) | (58.8 | ) | (49.5 | ) | ||||||||
Total
Manufacturing
|
6.0 | 5.3 | 19.8 | 33.1 | ||||||||||||
Total
income from operations
|
$ | 87.1 | $ | 172.2 | $ | 415.9 | $ | 501.6 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Average
common shares outstanding
|
113,859 | 113,055 | 113,530 | 112,482 | ||||||||||||
Dilutive
securities:
|
||||||||||||||||
Employee
and director stock options
|
74 | 727 | 54 | 847 | ||||||||||||
Convertible
debentures
|
- | 8 | - | 130 | ||||||||||||
Average
shares for diluted calculations
|
113,933 | 113,790 | 113,584 | 113,459 | ||||||||||||
Net
income
|
$ | 78,392 | $ | 114,114 | $ | 306,675 | $ | 333,347 | ||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ | .69 | $ | 1.01 | $ | 2.70 | $ | 2.96 | ||||||||
Diluted
|
$ | .69 | $ | 1.00 | $ | 2.70 | $ | 2.94 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Employee
and director stock options
|
1,473 | 63 | 1,792 | 63 | ||||||||||||
Stock
appreciation rights
|
88 | - | 2 | - | ||||||||||||
Convertible
debentures
|
35 | - | 35 | - | ||||||||||||
Total
potentially dilutive securities
|
1,596 | 63 | 1,829 | 63 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service
cost
|
$ | 3,126 | $ | 4,033 | $ | 12,031 | $ | 10,774 | ||||||||
Interest
cost
|
7,562 | 8,356 | 24,280 | 23,656 | ||||||||||||
Expected
return on plan assets
|
(7,297 | ) | (7,681 | ) | (21,684 | ) | (22,243 | ) | ||||||||
Recognized
actuarial loss
|
5,531 | 2,698 | 13,587 | 6,664 | ||||||||||||
Amortization
of prior service cost
|
(2,444 | ) | (64 | ) | (2,569 | ) | (191 | ) | ||||||||
Curtailment
loss
|
71 | - | 71 | - | ||||||||||||
Total
net pension cost
|
$ | 6,549 | $ | 7,342 | $ | 25,716 | $ | 18,660 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service
cost
|
$ | 637 | $ | 509 | $ | 1,891 | $ | 1,018 | ||||||||
Interest
cost
|
1,258 | 1,105 | 3,732 | 2,209 | ||||||||||||
Recognized
actuarial loss
|
157 | 68 | 467 | 138 | ||||||||||||
Amortization
of transition obligation
|
167 | 164 | 495 | 329 | ||||||||||||
Amortization
of prior service cost
|
(52 | ) | (50 | ) | (153 | ) | (101 | ) | ||||||||
Total
other postretirement benefit cost
|
$ | 2,167 | $ | 1,796 | $ | 6,432 | $ | 3,593 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Total
contract value of long-term contracts in process or not yet
begun
|
$ | 239.4 | $ | 290.7 | ||||
Payments
received
|
147.8 | 168.6 | ||||||
Revenues
recognized
|
108.9 | 119.7 | ||||||
Costs
recognized
|
67.9 | 74.5 | ||||||
Payments
received in excess of revenues recognized
|
38.9 | 48.9 | ||||||
Billings
in excess of costs and estimated profits on
|
||||||||
uncompleted
contracts, included in other current liabilities
|
$ | 40.7 | $ | 57.1 | ||||
Costs
and estimated profits in excess of billings on
|
||||||||
uncompleted
contracts, included in other current assets
|
$ | 1.8 | $ | 8.2 |
Total
estimated project costs
|
Total
costs incurred through September 30, 2009
|
Projected
costs for the remainder of 2009 and 2010
|
Projected
costs in 2011 and 2112
|
|||||||||||||
Ralph
Coffman (240C)
|
$ | 245 | $ | 212 | $ | 33 | $ | - | ||||||||
Joe
Douglas (240C)
|
257 | 69 | 116 | 72 | ||||||||||||
EXL
#1
|
190 | 140 | 50 | - | ||||||||||||
EXL
#2
|
191 | 117 | 74 | - | ||||||||||||
EXL
#3
|
192 | 85 | 107 | - | ||||||||||||
EXL
#4
|
192 | 30 | 56 | 106 | ||||||||||||
Total
rigs under construction
|
$ | 1,267 | $ | 653 | $ | 436 | $ | 178 |
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||||||||||
2009
|
2008
|
%
Change
|
2009
|
2008
|
%
Change
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Drilling
|
$ | 258.4 | $ | 357.1 | -28 | % | $ | 959.6 | $ | 1,064.9 | -10 | % | ||||||||||||
Manufacturing:
|
||||||||||||||||||||||||
Drilling
Products and Systems
|
93.5 | 111.0 | -16 | % | 271.3 | 360.3 | -25 | % | ||||||||||||||||
Mining,
Forestry and Steel Products
|
41.5 | 59.0 | -30 | % | 139.5 | 174.5 | -20 | % | ||||||||||||||||
Total
Manufacturing
|
135.0 | 170.0 | -21 | % | 410.8 | 534.8 | -23 | % | ||||||||||||||||
Total
revenues
|
$ | 393.4 | $ | 527.1 | -25 | % | $ | 1,370.4 | $ | 1,599.7 | -14 | % | ||||||||||||
Costs
and expenses:
|
||||||||||||||||||||||||
Drilling
|
$ | 177.3 | $ | 190.2 | -7 | % | $ | 563.5 | $ | 596.4 | -6 | % | ||||||||||||
Manufacturing:
|
||||||||||||||||||||||||
Drilling
Products and Systems
|
92.4 | 113.0 | -18 | % | 270.4 | 343.3 | -21 | % | ||||||||||||||||
Mining,
Forestry and Steel Products
|
36.6 | 51.7 | -29 | % | 120.6 | 158.4 | -24 | % | ||||||||||||||||
Total
Manufacturing
|
129.0 | 164.7 | -22 | % | 391.0 | 501.7 | -22 | % | ||||||||||||||||
Total
costs and expenses
|
$ | 306.3 | $ | 354.9 | -14 | % | $ | 954.5 | $ | 1,098.1 | -13 | % | ||||||||||||
Operating
income (loss):
|
||||||||||||||||||||||||
Drilling
|
$ | 81.1 | $ | 166.9 | -51 | % | $ | 396.1 | $ | 468.5 | -15 | % | ||||||||||||
Manufacturing:
|
||||||||||||||||||||||||
Drilling
Products and Systems
|
1.1 | (2.0 | ) | -155 | % | 0.9 | 17.0 | -95 | % | |||||||||||||||
Mining,
Forestry and Steel Products
|
4.9 | 7.3 | -33 | % | 18.9 | 16.1 | 17 | % | ||||||||||||||||
Total
Manufacturing
|
6.0 | 5.3 | 13 | % | 19.8 | 33.1 | -40 | % | ||||||||||||||||
Total
operating income
|
$ | 87.1 | $ | 172.2 | -49 | % | $ | 415.9 | $ | 501.6 | -17 | % | ||||||||||||
Net
income
|
$ | 78.4 | $ | 114.1 | -31 | % | $ | 306.7 | $ | 333.3 | -8 | % |
Three
months ended September 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
|||||||||||||
Revenues
|
$ | 258.4 | 100 | % | $ | 357.1 | 100 | % | ||||||||
Operating
costs
|
(121.3 | ) | -47 | % | (163.3 | ) | -46 | % | ||||||||
Depreciation
expense
|
(39.8 | ) | -15 | % | (32.2 | ) | -9 | % | ||||||||
Selling,
general and administrative expenses
|
(16.3 | ) | -6 | % | (16.2 | ) | -5 | % | ||||||||
Net
gain on property disposals
|
0.1 | 0 | % | 21.5 | 6 | % | ||||||||||
Operating
income
|
$ | 81.1 | 31 | % | $ | 166.9 | 47 | % | ||||||||
Offshore
fleet:
|
||||||||||||||||
Average
day rate
|
$ | 182,500 | $ | 161,100 | ||||||||||||
Rig
utilization
|
59 | % | 95 | % | ||||||||||||
Revenue-producing
days
|
1,197 | 1,817 | ||||||||||||||
Land
fleet:
|
||||||||||||||||
Average
day rate
|
$ | 22,500 | $ | 20,900 | ||||||||||||
Rig
utilization
|
56 | % | 97 | % | ||||||||||||
Revenue-producing
days
|
1,652 | 2,620 |
Increase
|
||||
(Decrease)
|
||||
Lower
offshore rig utilization
|
$ | (112.3 | ) | |
Lower
land rig utilization
|
(25.4 | ) | ||
Reimbursables
and other, net
|
(7.1 | ) | ||
Loss
of the Rowan-Anchorage1
|
(4.4 | ) | ||
Higher
average land day rates
|
1.6 | |||
Addition
of three land rigs2
|
6.4 | |||
Addition
of the J.P.
Bussell and Rowan-Mississippi3
|
18.4 | |||
Higher
average offshore day rates
|
24.1 | |||
Net
decrease
|
$ | (98.7 | ) |
Three
months ended September 30,
|
||||||||
2009
|
2008
|
|||||||
Gulf
of Mexico:
|
||||||||
Number
of rigs
|
8 | 9 | ||||||
Revenues
|
$ | 43,844,000 | $ | 108,988,000 | ||||
Average
day rate
|
$ | 137,900 | $ | 131,400 | ||||
Utilization
|
43 | % | 100 | % | ||||
Middle
East:
|
||||||||
Number
of rigs
|
9 | 9 | ||||||
Revenues
|
$ | 77,211,000 | $ | 124,545,000 | ||||
Average
day rate
|
$ | 161,400 | $ | 159,200 | ||||
Utilization
|
57 | % | 94 | % | ||||
North
Sea:
|
||||||||
Number
of rigs
|
2 | 2 | ||||||
Revenues
|
$ | 36,244,000 | $ | 33,328,000 | ||||
Average
day rate
|
$ | 209,200 | $ | 238,300 | ||||
Utilization
|
94 | % | 73 | % | ||||
Other
international:
|
||||||||
Number
of rigs
|
3 | 1 | ||||||
Revenues
|
$ | 63,465,000 | $ | 31,990,000 | ||||
Average
day rate
|
$ | 267,300 | $ | 324,600 | ||||
Utilization
|
84 | % | 100 | % |
Nine
months ended September 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
|||||||||||||
Revenues
|
$ | 959.6 | 100 | % | $ | 1,064.9 | 100 | % | ||||||||
Operating
costs
|
(403.5 | ) | -42 | % | (483.1 | ) | -45 | % | ||||||||
Depreciation
expense
|
(115.3 | ) | -12 | % | (91.1 | ) | -9 | % | ||||||||
Selling,
general and administrative expenses
|
(49.5 | ) | -5 | % | (50.6 | ) | -5 | % | ||||||||
Net
gain on property disposals
|
4.8 | 1 | % | 28.4 | 3 | % | ||||||||||
Operating
income
|
$ | 396.1 | 41 | % | $ | 468.5 | 44 | % | ||||||||
Offshore
fleet:
|
||||||||||||||||
Average
day rate
|
$ | 177,100 | $ | 160,800 | ||||||||||||
Rig
utilization
|
77 | % | 94 | % | ||||||||||||
Revenue-producing
days
|
4,599 | 5,402 | ||||||||||||||
Land
fleet:
|
||||||||||||||||
Average
day rate
|
$ | 23,600 | $ | 22,200 | ||||||||||||
Rig
utilization
|
63 | % | 95 | % | ||||||||||||
Revenue-producing
days
|
5,428 | 7,582 |
Increase
|
||||
(Decrease)
|
||||
Lower
offshore rig utilization
|
$ | (166.3 | ) | |
Lower
land rig utilization
|
(64.5 | ) | ||
Loss
of the Rowan-Anchorage1
|
(15.2 | ) | ||
Reimbursables
and other, net
|
(11.0 | ) | ||
Higher
average land day rates
|
5.5 | |||
Addition
of four land rigs2
|
18.7 | |||
Higher
average offshore day rates
|
51.4 | |||
Addition
of the J.P.
Bussell and Rowan-Mississippi3
|
76.1 | |||
Net
decrease
|
$ | (105.3 | ) |
Nine
months ended September 30,
|
||||||||
2009
|
2008
|
|||||||
Gulf
of Mexico:
|
||||||||
Number
of rigs
|
9 | 8 | ||||||
Revenues
|
$ | 252,113,000 | $ | 284,470,000 | ||||
Average
day rate
|
$ | 150,400 | $ | 124,500 | ||||
Utilization
|
67 | % | 97 | % | ||||
Middle
East:
|
||||||||
Number
of rigs
|
9 | 9 | ||||||
Revenues
|
$ | 300,030,000 | $ | 351,495,000 | ||||
Average
day rate
|
$ | 150,900 | $ | 154,900 | ||||
Utilization
|
81 | % | 92 | % | ||||
North
Sea:
|
||||||||
Number
of rigs
|
2 | 2 | ||||||
Revenues
|
$ | 138,669,000 | $ | 119,131,000 | ||||
Average
day rate
|
$ | 258,800 | $ | 235,400 | ||||
Utilization
|
98 | % | 91 | % | ||||
Other
international:
|
||||||||
Number
of rigs
|
2 | 2 | ||||||
Revenues
|
$ | 134,943,000 | $ | 128,775,000 | ||||
Average
day rate
|
$ | 293,100 | $ | 296,200 | ||||
Utilization
|
82 | % | 97 | % |
Three
months ended September 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
|||||||||||||
Revenues
|
$ | 93.5 | 100 | % | $ | 111.0 | 100 | % | ||||||||
Operating
costs
|
(86.6 | ) | -93 | % | (104.8 | ) | -94 | % | ||||||||
Depreciation
expense
|
(2.4 | ) | -3 | % | (2.4 | ) | -2 | % | ||||||||
Selling,
general and administrative expenses
|
(3.4 | ) | -4 | % | (5.8 | ) | -5 | % | ||||||||
Operating
income (loss)
|
$ | 1.1 | 1 | % | $ | (2.0 | ) | -2 | % |
·
|
A
decrease of $13.8 million attributable to $35.9 million recognized on
shipments of land rigs and component packages in 2009, down from $49.7
million in 2008;
|
·
|
A
decrease of $10.6 million attributable to $28.7 million of revenues
recognized on four offshore rig kit projects in progress in 2009, as
compared to $39.3 million recognized on six projects in
2008;
|
·
|
An
increase of $5.6 million attributable to $9.8 million recognized on
shipments of 13 mud pumps in 2009, up from $4.2 million on shipments of 9
in 2008.
|
Nine
months ended September 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
|||||||||||||
Revenues
|
$ | 271.3 | 100 | % | $ | 360.3 | 100 | % | ||||||||
Operating
costs
|
(253.1 | ) | -93 | % | (316.9 | ) | -88 | % | ||||||||
Depreciation
expense
|
(6.8 | ) | -3 | % | (7.2 | ) | -2 | % | ||||||||
Selling,
general and administrative expenses
|
(10.5 | ) | -4 | % | (19.2 | ) | -5 | % | ||||||||
Operating
income
|
$ | 0.9 | 0 | % | $ | 17.0 | 5 | % |
·
|
A
decrease of $64.3 million attributable to $82.3 million of revenues
recognized on five offshore rig kit projects in progress in 2009, as
compared to $146.6 million recognized on eight projects in
2008;
|
·
|
A
decrease of $26.7 million attributable to $81.1 million recognized on
shipments of land rigs and component packages in 2009, down from $107.8
million in 2008;
|
·
|
A
decrease of $19.0 million attributable to $1.4 million of revenues
recognized on shipments of top drives in 2009, down from $20.4 million in
2008;
|
·
|
An
increase of $14.7 million attributable to $37.6 million recognized on 42
mud pumps shipped in 2009, up from $22.9 million on 36 pumps in
2008.
|
Three
months ended September 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
|||||||||||||
Revenues
|
$ | 41.5 | 100 | % | $ | 59.0 | 100 | % | ||||||||
Operating
costs
|
(30.3 | ) | -73 | % | (44.4 | ) | -75 | % | ||||||||
Depreciation
expense
|
(1.7 | ) | -4 | % | (1.6 | ) | -3 | % | ||||||||
Selling,
general and administrative expenses
|
(4.1 | ) | -10 | % | (5.6 | ) | -9 | % | ||||||||
Net
loss on property disposals
|
(0.5 | ) | -1 | % | (0.1 | ) | 0 | % | ||||||||
Operating
income
|
$ | 4.9 | 12 | % | $ | 7.3 | 12 | % |
Nine
months ended September 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Amount
|
%
of Revenues
|
Amount
|
%
of Revenues
|
|||||||||||||
Revenues
|
$ | 139.5 | 100 | % | $ | 174.5 | 100 | % | ||||||||
Operating
costs
|
(102.0 | ) | -73 | % | (137.9 | ) | -79 | % | ||||||||
Depreciation
expense
|
(4.8 | ) | -3 | % | (4.5 | ) | -3 | % | ||||||||
Selling,
general and administrative expenses
|
(13.3 | ) | -10 | % | (15.9 | ) | -9 | % | ||||||||
Net
loss on property disposals
|
(0.5 | ) | 0 | % | (0.1 | ) | 0 | % | ||||||||
Operating
income
|
$ | 18.9 | 14 | % | $ | 16.1 | 9 | % |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Cash
and cash equivalents
|
$ | 681.1 | $ | 222.4 | ||||
Current
assets
|
$ | 1,650.9 | $ | 1,369.2 | ||||
Current
liabilities
|
$ | 492.1 | $ | 744.6 | ||||
Current
ratio
|
3.35 | 1.84 | ||||||
Current
maturities of long-term debt
|
$ | 64.9 | $ | 64.9 | ||||
Long-term
debt
|
$ | 801.2 | $ | 355.6 | ||||
Stockholders'
equity
|
$ | 2,972.1 | $ | 2,659.8 | ||||
Long-term
debt/total capitalization
|
0.21 | 0.12 |
Nine
months ended September 30,
|
||||||||
2009
|
2008
|
|||||||
Net
operating cash flows
|
$ | 409.0 | $ | 433.6 | ||||
Borrowings,
net of issue costs
|
491.7 | 80.0 | ||||||
Net
proceeds from asset disposals
|
5.7 | 53.5 | ||||||
Excess
tax benefits from stock-based compensation
|
(3.6 | ) | 2.0 | |||||
Proceeds
from equity compensation and debenture plans and other
|
0.3 | 32.6 | ||||||
Capital
expenditures
|
(393.2 | ) | (618.5 | ) | ||||
Debt
repayments
|
(51.2 | ) | (131.2 | ) | ||||
Net
change in restricted cash balance
|
- | 50.0 | ||||||
Cash
dividend payments
|
- | (33.7 | ) | |||||
Total
sources (uses)
|
$ | 458.7 | $ | (131.7 | ) |
·
|
$176.5
million towards construction of the four EXL class
rigs;
|
·
|
$82.9
million towards construction of our second and third 240C class rigs,
the Ralph Coffman
and Joe
Douglas;
|
·
|
$96.6
million for improvements to the existing offshore
fleet;
|
·
|
$5.3
million related to construction of two land rigs, one of which was
completed in the first quarter of 2009 with the other delivered in June
2009.
|
3.1
|
Amended
and Restated Bylaws of Rowan Companies, Inc., effective as of
October 29, 2009 (incorporated by reference to Exhibit 3.1 of the
Company’s Current Report on Form 8-K dated November 2,
2009).
|
4.1
|
Indenture
for Senior Debt Securities dated as of July 21, 2009, between Rowan
Companies, Inc. and U.S. Bank National Association, as trustee
(incorporated by reference to Exhibit 4.1 of the Company’s Current Report
on Form 8-K dated July 21, 2009).
|
4.2
|
First
Supplemental Indenture dated as of July 21, 2009, between Rowan Companies,
Inc. and U.S. Bank National Association, as trustee (incorporated by
reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K dated
July 21, 2009).
|
4.3
|
Amendment,
dated as of October 30, 2009, to the Amended and Restated Rights
Agreement, dated as of January 24, 2002, as amended, between Rowan
Companies, Inc. and Wells Fargo Bank, National Association, as rights
agent (incorporated by reference to Exhibit 4.1 of the Company’s Current
Report on Form 8-K dated November 2, 2009).
|
10.1
|
Amendment
No. 1 dated August 4, 2009, to the Commitment to Guarantee Obligations
between Rowan and the Maritime Administration of the U.S. Department of
Transportation (relating to the Bob Keller, formerly
Tarzan II)
(incorporated by reference to Exhibit 10.5 of the Company’s Quarterly
Report on Form 10-Q filed August 10, 2009).
|
10.2
|
Supplement
No. 2 dated August 4, 2009, to Trust Indenture between Rowan and Citibank,
N.A. (relating to the Bob Keller, formerly
Tarzan II)
(incorporated by reference to Exhibit 10.6 of the Company’s Quarterly
Report on Form 10-Q filed August 10, 2009).
|
10.3
|
Form
of Indemnification Agreement between Rowan Companies, Inc. and each of its
directors and certain officers (incorporated by reference to Exhibit 10.1
of the Company’s Current Report on Form 8-K dated November 2,
2009).
|
31.1
|
Certification
of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
31.2
|
Certification
of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
32.1
|
Certification
of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
|
32.2
|
Certification
of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
|
101.INS
|
XBRL
Instance Document.
|
101.SCH
|
XBRL
Taxonomy Extension Schema Document.
|
101.CAL
|
XBRL
Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
XBRL
Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
XBRL
Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
XBRL
Taxonomy Extension Presentation Linkbase
Document.
|
ROWAN
COMPANIES, INC.
|
||
(Registrant)
|
||
Date: November
6, 2009
|
/s/
W. H. WELLS
|
|
W.
H. Wells
|
||
Vice
President – Finance and
|
||
Chief
Financial Officer
|
||
Date: November
6, 2009
|
/s/
GREGORY M. HATFIELD
|
|
Gregory
M. Hatfield
|
||
Controller
|
||
(Chief
Accounting Officer)
|