Wells Fargo Lowers Estimates on Rowan Companies

Wells Fargo lowers 2012E EPS to $3.31 from $3.34 on Rowan Companies RDC as fleet status report points to greater 2011 and 2012 yard time than previously estimated. In the report, Wells Fargo writes, “We are lowering our 2011 and 2012 EBITDA and EPS estimates to incorporate Rowan's November Fleet Status Report (FSR). For 2011, Rowan disclosed that its maintenance-related yardtime estimates for three MLT-116C rigs signed to Saudi Aramco (Arch Rowan, Charles Rowan, Rowan Middletown) have been revised up from the prior FSR and are above our prior estimates. Mostly as a result of this greater yardtime schedule, we are revising our Q4 revenue and opex estimates, and thus lowering our 2011E EBITDA to $357MM, down from $373MM.” RDC closed at $33.98 per share on Wednesday.