Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk
Our exposure to risk based on changes in interest rates during the nine-month period ended September 30, 2025 relates primarily to the Revolving Credit Facility. The Revolving Credit Facility bears interest at floating rates. For variable rate debt, interest rate changes generally do not affect the fair market value of such debt assuming all other factors remain constant but do impact future earnings and cash flows. Accordingly, we may be exposed to interest rate risk on borrowings under the Credit Agreement.
Based on current borrowing levels at September 30, 2025, a 25-basis point fluctuation in interest rates for the nine months ended September 30, 2025 would have resulted in an increase or decrease to our interest expense of approximately $0.6 million.
See “Note 2. Summary of Significant Accounting Policies” to the Consolidated Financial Statements included in Item 8 of our 2024 Form 10-K for a discussion relating to credit and market, commodity price and interest rate risk management.
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