04-HP-876_newMDA.qxd 12/15/04 3:04 PM Page 52 INTEREST RATE RISK  (in thousands) 2004 2005 2006 2007 2008 After Total Fair Value 2008 @ 9/30/03 Fixed Rate Debt $ – $ – $ – $ 25,000 $ – $175,000 $ 200,000 $ 226,500 Average Interest Rate – – – 5.5% – 6.4% 6.3% Variable Rate Debt $ 30,000 $ – $ – $ – $ – $ – $ 30,000 $ 30,000 Average Interest Rate (a) – – – – – – (a) (a) LIBOR plus an increment of .875 to 1.125% depending on certain financial ratios. Equity Price Risk. On September 30, 2004, the Company owned stocks in other publicly held companies with a total market value of $240.7 million. The Company’s investments in Atwood O ceanics, Inc., and Schlumberger, Ltd., made up almost 94 percent of the portfolio’s  market value at September 30, 2004. Although the Company sold a portion of its position in Schlumber in 2004 and Atwood in the first quarter of 2005, the Company has no specific plans to sell additional securities, but may sell additional securities based on market conditions and other circumstances. These securities are subject to a wide variety and  number of market-related risks that could substantially reduce or increase the market value of the Company’s holdings. Except for the Company’s holdings in its equity affiliate, Atwood Oceanics, I nc., the portfolio is recorded at fair value  on its balance sheet with changes in unr ealized after-tax value reflected in the equity section of its balance sheet. Any reduction in market value would have an impact on the Company’s debt ratio and financial strength. The total market value of the portfolio of securities was $169.5 million at September 30, 2003. 53