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Rowan Companies' CEO Discusses Q4 2011 Results - Earnings Call Transcript

Before Matt begins his remarks, I'd like to remind you that during the course of this conference call, forward-looking statements may be made within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about a proposed change in corporate structure, as well as statements as to the expectations, beliefs and future expected financial performance of the company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the company. These and other relevant factors will have, have been and will be disclosed in the company's filings with the SEC.

With that, I'll turn the call over to Matt.

W. Matt Ralls

Thanks, Suzanne. Good morning, everyone, and thank you for joining us. Before we get into the results of the fourth quarter, I want to discuss the other release we made today. Last Friday, our Board of Directors unanimously approved a plan to change our corporate structure, which we believe will enhance shareholder value by further strengthening our long-term competitive position as a global contract driller. Under the proposed plan, our legal domicile will change from Delaware to the U.K. where we already have substantial and growing operations. This move is designed to ensure that Rowan will remain competitive in our industry over the long-term and have maximum flexibility in terms of the markets in which we work. The offshore drilling industry is a global business, and over the past several years, Rowan has been steadily moving away from being a predominantly U.S.-based contractor and toward geographic diversification.

By way of example, in 2004, 10% of our revenues were generated outside the U.S. In 2012, we estimate that 81% of our revenues will be generated outside the U.S. In addition, 96% of our contract backlog is from markets outside the U.S. Eight of our top 10 customers are headquartered outside the U.S., and as you're aware, the overwhelming majority of our competitors are domiciled overseas.

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