Rowan Companies
Encyclopedia
Rowan Companies, Inc. founded in 1923 and based in Houston, Texas
, is an S&P 500
company which provides contract oil well
drilling services and rigs, and manufactures equipment for drilling as well as for mining and timber industries. Rowan Companies is located at 2800 Post Oak Boulevard, Suite 5450, in Houston, Texas. W. Matt Ralls is President, and Chief Executive Officer
.
The company operates a fleet of 24 offshore drilling jackup rig
s and 32 land based drilling rig
s. In North America
the company operates onshore in the United States
, as well as offshore in the Gulf of Mexico
and off the coast of eastern Canada
, and internationally in the Middle East
, North Sea
, West Africa, Mexico and Egypt.
Rowan operates a manufacturing division that produces equipment for the drilling, mining and timber industries:
In 1947, the drilling company was reorganized as Rowan Companies, Inc.
In 1964, the company began paying a cash dividend
to shareholders, which it continued without interruption for the next couple of decades. The company was publicly traded on the New York Stock Exchange
under the ticker symbol RDC.
The company performed well through the long secular bear market and economic malaise
of the 1970s. Its primary businesses were contract drilling, and also aircraft service through its subsidiary business Era Aviation, Inc. In 1981, earnings came in at , and the stock split two-for-one. During that prior decade the stock had risen by over 30-fold in price, from its low of the decade. By that time the stock had been added to the S&P 500 Index list of the largest publicly traded companies in the United States.
The company continued to perform well following the early 1980s recession
, however, in 1982, both the stock price and the company's earnings reached their all-time high for many years to follow. Earnings peaked at almost that year.
In the early 1980s, Rowan began building its heavy-duty Gorilla Class jackup rigs for use in harsher offshore environments. By 1983, the company began to run into serious troubles, as earnings dropped to less than . By 1984, earnings were down to only , and the stock price had dropped by nearly two-thirds from its 1982 all-time high.
In 1985, earnings were flat from the prior year, and the stock price lost an additional 25% from its 1984 low. By that time, the company had accumulated in long-term debt. Between 1985 and 1995, Rowan incurred cumulative net losses of over .
By 1986, the company was running a loss of , and the stock dropped by half again from its 1985 low, down cumulatively by 86% from its 1982 all-time high.
In 1987, the company lost an additional . Adding to the problems, the company's long-term debt by then had grown to , and the company had diluted shareholder equity by issuing an additional 30% of its common shares outstanding within the prior couple of years. The company also discontinued payment of its cash dividend that year. Despite the financial troubles, the stock performed well early that year, rising over threefold from its 1986 low. However, in the fourth quarter it fell victim to the 1987 stock market crash, and dropped by two-thirds again from that earlier 1987 peak.
In 1990 the company earned a small profit of several million dollars. But it fell victim to the 1990-1991 recession, and by 1991 it posted a loss of .
In 1992, the loss grew to , but by 1993 the loss had improved to only .
In 1994, Rowan Companies acquired the assets of Marathon LeTourneau Company. The company lost that year, and the stock still traded no higher than 60% below its 1982 all-time peak. It also lost some of its value that year resulting from the 1994 economic soft landing.. It makes the LeTourneau L-2350 the largest production model Wheeled loader built for the mining industries.
By 1995, the company's long-term debt had grown to , and the string of losses continued, with lost that year. However, the stock price continued to steadily rise, and reached a new intermediate-term high above its 1994 peak price. By early 1996, the stock price had more than doubled from its 1995 lows, but was still trading 45% below its 1982 all-time high.
In 2000, C. Robert Palmer was Chairman and CEO of Rowan Companies, through at least 2002.
In 2001, Rowan began designing its Tarzan Class jackup rig
s, and delivered the first one in 2004.
In 2002, Rowan's revenue dropped by 19%, and the company lost .
In 2003, Rowan reached its peak number of employees up to that time, and also for the following years after, at 5,395. That year, the company lost .
In 2004, Rowan sold its aviation subsidiary business Era Aviation, Inc. for in cash. The subsidiary chartered helicopter and fixed-wing aviation services. In 2004, Rowan Companies lost .
IN 2009, Rowan got a new chief officer who took over their Houston Offices.
founded his company R.G. LeTourneau, Inc. in 1929 in California as a contractor of earthmoving equipment. LeTourneau manufactured products in Longview, Texas
. During World War II
, the company provided 70% of the Allies
' earthmoving equipment. In 1954, it built the first jack-up drilling platform. In 1955, it made the first log-stacker machine. In 1965, the company made the first intermodal crane.
Marathon LeTourneau Company designed all of Rowan Companies' jack-up rigs, and delivered the last one to Rowan as an independent company in 1986.
In 1994, Rowan Companies acquired the assets of Marathon LeTourneau Company.
In 2004, LeTourneau formed an alliance with SourceOne Drilling Systems.
In 2006, LeTourneau changed its name to LeTourneau Technologies, Inc.
In 2011, Rowan announced the sale of LeTourneau Technologies to Joy Global
.
s.
On January 31, 2000, Rowan's subsidiary LeTourneau acquired Ellis Williams Company, and also its sibling company EWCO, Inc., for . After the acquisition, Ellis Williams, Jr. remained with the new subsidiary as a design consultant, and Michael R. Williams remained as Senior Vice President and General Manager. The new subsidiary company was renamed LeTourneau Ellis Williams, Inc.
.
On February 1, 2002, the Rowan Electric, Inc. subsidiary unit of Rowan Companies acquired assets of Oilfield-Electric-Marine, Inc., which operated as OEM Power Systems, and the Rowan subsidiary company also acquired Industrial Logic Systems, Inc. the same day. The deal was completed for in Rowan common stock.
Kevin R. Williams had been President of Oilfield-Electric-Marine, Inc., and he stayed on as President of Rowan Electric, Inc., which then became the Rowan subsidiary division Oilfield-Electric-Marine.
jackup rigs that are designated as Gorilla Class rigs, Super Gorilla Class rigs, Tarzan Class rigs, 240C Class Rigs and EXL class rigs as well as conventional jackup rigs.
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
, is an S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
company which provides contract oil well
Oil well
An oil well is a general term for any boring through the earth's surface that is designed to find and acquire petroleum oil hydrocarbons. Usually some natural gas is produced along with the oil. A well that is designed to produce mainly or only gas may be termed a gas well.-History:The earliest...
drilling services and rigs, and manufactures equipment for drilling as well as for mining and timber industries. Rowan Companies is located at 2800 Post Oak Boulevard, Suite 5450, in Houston, Texas. W. Matt Ralls is President, and Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
.
The company operates a fleet of 24 offshore drilling jackup rig
Jackup rig
A jack-up rig is a type of mobile platform that is able to stand still on the sea floor, resting on a number of supporting legs. The most popular designs use 3 independent legs, although some jackups have 4 legs or more...
s and 32 land based drilling rig
Drilling rig
A drilling rig is a machine which creates holes or shafts in the ground. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells, or they can be small enough to be moved manually by one person...
s. In North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
the company operates onshore in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, as well as offshore in the Gulf of Mexico
Gulf of Mexico
The Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
and off the coast of eastern Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, and internationally in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
, North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
, West Africa, Mexico and Egypt.
Rowan operates a manufacturing division that produces equipment for the drilling, mining and timber industries:
- LeTourneau Technologies, Inc.,
Rowan Companies
Rowan Drilling Company, Inc. was founded in 1923 by Arch Rowan as a contract drilling business.In 1947, the drilling company was reorganized as Rowan Companies, Inc.
In 1964, the company began paying a cash dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
to shareholders, which it continued without interruption for the next couple of decades. The company was publicly traded on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
under the ticker symbol RDC.
The company performed well through the long secular bear market and economic malaise
Malaise
Malaise is a feeling of general discomfort or uneasiness, of being "out of sorts", often the first indication of an infection or other disease. Malaise is often defined in medicinal research as a "general feeling of being unwell"...
of the 1970s. Its primary businesses were contract drilling, and also aircraft service through its subsidiary business Era Aviation, Inc. In 1981, earnings came in at , and the stock split two-for-one. During that prior decade the stock had risen by over 30-fold in price, from its low of the decade. By that time the stock had been added to the S&P 500 Index list of the largest publicly traded companies in the United States.
The company continued to perform well following the early 1980s recession
Early 1980s recession
The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s. The United States and Japan exited recession relatively early, but high unemployment would continue to affect other OECD nations through at least 1985...
, however, in 1982, both the stock price and the company's earnings reached their all-time high for many years to follow. Earnings peaked at almost that year.
In the early 1980s, Rowan began building its heavy-duty Gorilla Class jackup rigs for use in harsher offshore environments. By 1983, the company began to run into serious troubles, as earnings dropped to less than . By 1984, earnings were down to only , and the stock price had dropped by nearly two-thirds from its 1982 all-time high.
In 1985, earnings were flat from the prior year, and the stock price lost an additional 25% from its 1984 low. By that time, the company had accumulated in long-term debt. Between 1985 and 1995, Rowan incurred cumulative net losses of over .
By 1986, the company was running a loss of , and the stock dropped by half again from its 1985 low, down cumulatively by 86% from its 1982 all-time high.
In 1987, the company lost an additional . Adding to the problems, the company's long-term debt by then had grown to , and the company had diluted shareholder equity by issuing an additional 30% of its common shares outstanding within the prior couple of years. The company also discontinued payment of its cash dividend that year. Despite the financial troubles, the stock performed well early that year, rising over threefold from its 1986 low. However, in the fourth quarter it fell victim to the 1987 stock market crash, and dropped by two-thirds again from that earlier 1987 peak.
In 1990 the company earned a small profit of several million dollars. But it fell victim to the 1990-1991 recession, and by 1991 it posted a loss of .
In 1992, the loss grew to , but by 1993 the loss had improved to only .
In 1994, Rowan Companies acquired the assets of Marathon LeTourneau Company. The company lost that year, and the stock still traded no higher than 60% below its 1982 all-time peak. It also lost some of its value that year resulting from the 1994 economic soft landing.. It makes the LeTourneau L-2350 the largest production model Wheeled loader built for the mining industries.
By 1995, the company's long-term debt had grown to , and the string of losses continued, with lost that year. However, the stock price continued to steadily rise, and reached a new intermediate-term high above its 1994 peak price. By early 1996, the stock price had more than doubled from its 1995 lows, but was still trading 45% below its 1982 all-time high.
In 2000, C. Robert Palmer was Chairman and CEO of Rowan Companies, through at least 2002.
In 2001, Rowan began designing its Tarzan Class jackup rig
Jackup rig
A jack-up rig is a type of mobile platform that is able to stand still on the sea floor, resting on a number of supporting legs. The most popular designs use 3 independent legs, although some jackups have 4 legs or more...
s, and delivered the first one in 2004.
In 2002, Rowan's revenue dropped by 19%, and the company lost .
In 2003, Rowan reached its peak number of employees up to that time, and also for the following years after, at 5,395. That year, the company lost .
In 2004, Rowan sold its aviation subsidiary business Era Aviation, Inc. for in cash. The subsidiary chartered helicopter and fixed-wing aviation services. In 2004, Rowan Companies lost .
IN 2009, Rowan got a new chief officer who took over their Houston Offices.
LeTourneau Technologies
R. G. LeTourneauR. G. LeTourneau
Robert Gilmour LeTourneau , born in Richford, Vermont, was a prolific inventor of earthmoving machinery. His machines represented nearly 70 percent of the earthmoving equipment and Engineering vehicles used during World War II, and he was responsible for nearly 300 patents...
founded his company R.G. LeTourneau, Inc. in 1929 in California as a contractor of earthmoving equipment. LeTourneau manufactured products in Longview, Texas
Longview, Texas
Longview is a city in Gregg and Harrison Counties in the U.S. state of Texas. As of the 2010 Census, the population was 80,455. Most of the city is located in Gregg County, of which it is the county seat; only a small part extends into the western part of neighboring Harrison County. It is...
. During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the company provided 70% of the Allies
Allies
In everyday English usage, allies are people, groups, or nations that have joined together in an association for mutual benefit or to achieve some common purpose, whether or not explicit agreement has been worked out between them...
' earthmoving equipment. In 1954, it built the first jack-up drilling platform. In 1955, it made the first log-stacker machine. In 1965, the company made the first intermodal crane.
Marathon LeTourneau Company designed all of Rowan Companies' jack-up rigs, and delivered the last one to Rowan as an independent company in 1986.
In 1994, Rowan Companies acquired the assets of Marathon LeTourneau Company.
In 2004, LeTourneau formed an alliance with SourceOne Drilling Systems.
In 2006, LeTourneau changed its name to LeTourneau Technologies, Inc.
In 2011, Rowan announced the sale of LeTourneau Technologies to Joy Global
Joy Global
Joy Global Inc. is a Fortune 1000 company with an integral role in the mining industry. It manufactures and services heavy machinery used in underground and surface mining. Its underground mining machinery business operates primarily through subsidiary Joy Mining Machinery, a brand known for its...
.
LeTourneau Ellis Williams
Ellis Williams, Jr. founded the Ellis Williams Company, of Houston, Texas. Michael R. Williams served as President. EWCO, Inc. was a sibling company which operated as Traitex Machine Co. and made drilling mud pumpMud pump
A mud pump is a reciprocating piston/plunger device designed to circulate drilling fluid under high pressure down the drill string and back up the annulus....
s.
On January 31, 2000, Rowan's subsidiary LeTourneau acquired Ellis Williams Company, and also its sibling company EWCO, Inc., for . After the acquisition, Ellis Williams, Jr. remained with the new subsidiary as a design consultant, and Michael R. Williams remained as Senior Vice President and General Manager. The new subsidiary company was renamed LeTourneau Ellis Williams, Inc.
Oilfield-Electric-Marine
Oilfield-Electric-Marine, Inc. had been in business in Houston, Texas since the late 1970s. It made both AC and DC motors and drive systems, electric consoles for marine drilling industries, and medium voltage switchgearSwitchgear
The term switchgear, used in association with the electric power system, or grid, refers to the combination of electrical disconnects, fuses and/or circuit breakers used to isolate electrical equipment. Switchgear is used both to de-energize equipment to allow work to be done and to clear faults...
.
On February 1, 2002, the Rowan Electric, Inc. subsidiary unit of Rowan Companies acquired assets of Oilfield-Electric-Marine, Inc., which operated as OEM Power Systems, and the Rowan subsidiary company also acquired Industrial Logic Systems, Inc. the same day. The deal was completed for in Rowan common stock.
Kevin R. Williams had been President of Oilfield-Electric-Marine, Inc., and he stayed on as President of Rowan Electric, Inc., which then became the Rowan subsidiary division Oilfield-Electric-Marine.
Drilling rigs
Its 24 offshore jackup rigs include cantileverCantilever
A cantilever is a beam anchored at only one end. The beam carries the load to the support where it is resisted by moment and shear stress. Cantilever construction allows for overhanging structures without external bracing. Cantilevers can also be constructed with trusses or slabs.This is in...
jackup rigs that are designated as Gorilla Class rigs, Super Gorilla Class rigs, Tarzan Class rigs, 240C Class Rigs and EXL class rigs as well as conventional jackup rigs.
Manufacturing
- LeTourneau Technologies, Inc. is a wholly owned subsidiary which was formerly named LeTourneauLeTourneauLeTourneau can refer to several things:*R.G. LeTourneau, U.S. businessperson, inventor and academic.** LeTourneau University, university founded by R. G...
, Inc. It was founded by R.G. LeTourneau, an inventor and academic who also founded LeTourneau UniversityLeTourneau UniversityLeTourneau University is a private, interdenominational Christian university located in Longview, Texas, United States with flagship programs in engineering, aeronautical science, business and education...
. LeTourneau Technologies performs all of the company's manufacturing operations. It operates a steel mini mill that recycles scrap steel, makes steel plate, alloy steel and tool steelTool steelTool steel refers to a variety of carbon and alloy steels that are particularly well-suited to be made into tools. Their suitability comes from their distinctive hardness, resistance to abrasion, their ability to hold a cutting edge, and/or their resistance to deformation at elevated temperatures...
plate.
- The Steel Products group makes higher grades of steel, including mold steels, free machining steelFree machining steelFree machining steel is steel that forms small chips when machined. This increases the machinability of the material because smaller chips reduce the length of contact between the workpiece and the cutting tool, thus reducing friction, heat, power required, and wear on the tool. It also reduces the...
, aircraft quality steels and hydrogen, crack-resistant steels.
- The Mining Products group makes heavy mining equipment such as large wheeled front-end loaders for coal, gold, copper, diamond and iron ore mines. It operates a network to distribute to the western United States and AustraliaAustraliaAustralia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
.
- The Forestry Products group is based in Portland, OregonPortland, OregonPortland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
and makes diesel-electric powered log stackers up to 55 ton capacity.
- The Drilling Systems group makes drilling mud pumps, draw-worksDraw-worksA draw-works is the primary hoisting machinery that is a component of a rotary drilling rig. Its main function is to provide a means of raising and lowering the traveling blocks. The wire-rope drilling line winds on the drawworks drum and extends to the crown block and traveling blocks, allowing...
, top drivesTop driveA top drive is a mechanical device on a drilling rig that provides clockwise rotational force to the drill string to facilitate the process of drilling a borehole. It is an alternative to rotary table...
, and other drilling systems components.
- The Power Systems group makes AC motorAC motorAn AC motor is an electric motor driven by an alternating current.It commonly consists of two basic parts, an outside stationary stator having coils supplied with alternating current to produce a rotating magnetic field, and an inside rotor attached to the output shaft that is given a torque by the...
s and other electrical components for the oil and gas, marineMarine (ocean)Marine is an umbrella term. As an adjective it is usually applicable to things relating to the sea or ocean, such as marine biology, marine ecology and marine geology...
, mining and dredging industries.