Rowan Companies Q2 2007 Earnings Call Transcript

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2007-08-02 11:42:32.0

Tags: Rowan Cos. Inc.

Question-and-Answer Session

Operator

[Operator Instructions]

We'll take our first question from Rob MacKenzie with FBR Capital Markets.

Robert MacKenzie - FBR Capital Markets

Good morning, guys.

Daniel F. McNease - Chairman, President and Chief Executive Officer

Morning.

Robert MacKenzie - FBR Capital Markets

A question, I may have missed it earlier in the call and I apologize if I did. But, Danny you talked in the past about moving three-year or so rigs out of the US Gulf of Mexico to foreign markets, Middle East, North Sea, Latin America I think were the three regions. Can you update us on the status of getting some more rigs out of the US Gulf?

Daniel F. McNease - Chairman, President and Chief Executive Officer

Well, we have currently 14 tenders in house that we're looking at. And we're bidding in all these areas, and we'll just have to wait and see how successful we are. But like I said early in our presentation, there's a lot of demand and people are still offering long-term contract.

Robert MacKenzie - FBR Capital Markets

Okay. And then separately, in the US Gulf itself, can you give us a feeling for whether you think the Gulf actually reached bottom yet or if there's still further downside in demand there as hurricane season progresses?

Daniel F. McNease - Chairman, President and Chief Executive Officer

Well I mean it's flattened out and it's actually started up is the case, we got a higher day rate for the Juneau. We were able to renew the bigger rigs at the same price or higher than we were getting before. So believe it's bottomed out and started up. One thing's that's driving our fleet is the deeper gas drilling and we're getting the rate to drill deep well for BP which is... it's going to be over 30,000 feet. And people are talking to us about some additional opportunities like that. So we believe that the deep gas is going to play a big role in Rowan's future here in Gulf of Mexico.

Robert MacKenzie - FBR Capital Markets

Okay. And then separate question, you've recently had a shareholder known for being activist taking a big stake in the Company. What kind of... have they tried to put any pressure on you or what are you trying to... what are you seeing in terms of the behavior pressure or anything that would lead you to change any strategic direction?

 
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