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10-Q
SUPERIOR ENERGY SERVICES INC filed this Form 10-Q on 10/26/2016
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We do not hold derivatives for trading purposes or use derivatives with complex features. When we believe prudent, we enter into forward foreign exchange contracts to hedge the impact of foreign currency fluctuations. We do not enter into forward foreign exchange contracts for trading or speculative purposes.  At September 30, 2016, we had no outstanding foreign currency forward contracts.



Interest Rate Risk



At September 30, 2016, our debt was comprised of the following (in thousands):





 

 

 

 

 

 



 

 

 

 

 

 



 

Fixed
Rate Debt

 

Variable
Rate Debt

6 3/8 % Senior Notes due 2019

 

$

500,000 

 

$

 -

7 1/8% Senior Notes due 2021

 

 

500,000 

 

 

300,000 

Total Debt

 

$

1,000,000 

 

$

300,000 



 

 

 

 

 

 



Variable debt of $300 million represents the portion of the $800 million aggregate principal amount of our 7 1/8% senior notes subject to the fixed-to-variable interest rate swap agreements. Based on the amount of this debt outstanding as of September 30, 2016, a 10% increase in the variable interest rate would have increased our interest expense for the nine months ended September 30, 2016 by approximately $1.2 million, while a 10% decrease would have decreased our interest expense by approximately $1.2 million. 



Commodity Price Risk



Our revenues, profitability and future rate of growth significantly depend upon the market prices of oil and natural gas.  Lower prices may also reduce the amount of oil and natural gas that can economically be produced. 



For additional discussion, see Part 1, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”



Item 4.  Controls and Procedures



a.

Evaluation of disclosure controls and procedures.    As of the end of the period covered by this quarterly report on Form 10-Q, our Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation, that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) are effective for ensuring that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures and is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.



b.

Changes in internal control.  There has been no change in our internal control over financial reporting that occurred during the three months ended September 30, 2016, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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