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## INTEREST RATE RISK (in thousands) 

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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. 

