PKD Parker Drilling Co

Risks

• We recently emerged from bankruptcy, which may adversely affect our business and relationships.
• Our actual financial results after emergence from bankruptcy may not be comparable to our historical financial information as a result of the implementation of the Plan and the transactions contemplated thereby.
• Upon our emergence from bankruptcy, the composition of our board of directors changed significantly.
• The volatility of prices for oil and natural gas has had, and may continue to have, a material adverse effect on our financial condition, results of operations, and cash flows.
• Despite our current level of indebtedness, we may still be able to incur more debt. This could further exacerbate the risks associated with our indebtedness, including limiting our liquidity and our ability to pursue other business opportunities.
• Our current operations and future growth may require significant additional capital, and the amount and terms of our indebtedness could impair our ability to fund our capital requirements.
• Our backlog of contracted revenues may not be fully realized and may reduce significantly in the future, which may have a material adverse effect on our financial position, results of operations, or cash flows.
• Certain of our contracts are subject to cancellation by our customers without penalty and with little or no notice.
• Service contracts with national oil companies may expose us to greater risks than we normally assume in service contracts with non-governmental customers.
• We derive a significant amount of our revenues from a few major customers. The loss of a significant customer could adversely affect us.
• A slowdown in economic activity may result in lower demand for our drilling and drilling-related services and rental tools business, and could have a material adverse effect on our business.
• The contract drilling and the rental tools businesses are highly competitive and cyclical, with intense price competition.
• 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.
• Our international operations are subject to governmental regulation and other risks.
• Our acquisitions, dispositions, and investments may not result in the realization of savings, the creation of efficiencies, the generation of cash or income, or the reduction of risk, which may have a material adverse effect on our liquidity, consolidated results of operations, and consolidated financial condition.
• Failure to comply with anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010, could result in fines, criminal penalties, negative commercial consequences and an adverse effect on our business.
• Failure to attract and retain skilled and experienced personnel could affect our operations.
• We are not fully insured against all risks associated with our business.
• 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 may reduce our business opportunities and increase our operating costs.
• Regulation of greenhouse gases and climate change could have a negative impact on our business.
• The number and quantity of viable financing alternatives available to us may be significantly impacted by unfavorable lending and investment policies by financial institutions and insurance companies associated with concerns about environmental impacts of the oil and natural gas industry, on which our business depends, and negative views around our and our customer’s efforts with respect to environmental and social matters and related governance considerations could harm the perception of the Company by certain investors or result in the exclusion of our securities from consideration by those investors.
• We are regularly involved in litigation, some of which may be material.
• Increased regulation of hydraulic fracturing could result in reductions or delays in drilling and completing new oil and natural gas wells, which could adversely impact the demand for rental tools.
• We may become a non-reporting company if we proceed with the Stock Splits.
• Because our common stock is not listed on a national securities exchange, it is less liquid and its price may be negatively impacted by factors that are unrelated to our operations.
• Certain shareholders own large portions of our outstanding common stock, which may limit your ability to influence our actions.
• The corporate opportunity provisions in our certificate of incorporation could enable affiliates (as defined in our certificate of incorporation) of ours to benefit from corporate opportunities that might otherwise be available to us.
• We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock.
• Our certificate of incorporation designates the Court of Chancery in the State of Delaware (or, if and only if the Court of Chancery lacks subject matter jurisdiction, the federal district court for the District of Delaware) as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.
• We do not anticipate paying any dividends on our common stock in the foreseeable future.
• Issuer Purchases of Equity Securities