76321--3/3/2010--PARKER_DRILLING_CO

related topics

{debt, indebtedness, cash}

{operation, natural, condition}

{gas, price, oil}

{customer, product, revenue}

{regulation, change, law}

{stock, price, operating}

{cost, regulation, environmental}

{provision, law, control}

{financial, litigation, operation}

{cost, contract, operation}

{personnel, key, retain}

Rig upgrade, refurbishment and construction projects are subject to risks and uncertainties, including delays and cost overruns, which could have an adverse impact on our results of operations and cash flows. Failure to retain skilled and experienced personnel could affect our operations. Our ability to service our debt obligations is primarily dependent upon our future financial performance. Our current operations and future growth may require significant additional capital, and the amount of our indebtedness could impair our ability to fund our capital requirements. Volatile oil and natural gas prices impact demand for our drilling and related services. A decrease in demand for crude oil and natural gas or other factors may reduce demand for our services and substantially reduce our profitability or result in our incurring losses. Certain of our contracts are subject to cancellation by our customers without penalty with little or no notice. We rely on a small number of customers, and the loss of a significant customer could adversely affect us. Contract drilling and the rental tools business are highly competitive and cyclical, with intense price competition. Our operations could be adversely affected by terrorism, war, civil disturbances, political instability and similar events. Our international operations are also subject to governmental regulation and other risks. Inconsistent application of foreign tax and other laws may adversely affect our operations. We are subject to hazards customary for drilling operations, which could adversely affect our financial performance if we are not adequately indemnified or insured. Government regulations and environmental risks, which reduce our business opportunities and increase our operating costs, might worsen in the future. We are regularly involved in litigation, some of which may be material. Risks Related to Our Common Stock The market price of our common stock has fluctuated significantly. A hostile takeover of our company would be difficult. Risks Related to our Debt Securities We may not be able to repurchase our 9.625% Senior Notes upon a change of control. We may not have sufficient cash to repurchase the 2.125% Convertible Senior Notes at the option of the holder upon a fundamental change or to pay the cash payable upon a conversion. The indenture for our 9.625% Senior Notes and our senior secured credit agreement impose significant operating and financial restrictions, which may prevent us from capitalizing on business opportunities and taking some actions.

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76321--3/3/2010--PARKER_DRILLING_CO_/DE/