MYR GROUP INC. 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk We were not parties to any derivative instruments and had no derivative financial instruments during the years ended December 31, 2023, 2022 or 2021. Any borrowings under our Facility are based upon interest rates that will vary depending upon the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, CDOR, and Term SOFR Reference Rate. If the prime rate, Canadian prime rate, the NYFRB overnight bank funding rate, CDOR, or Term SOFR Reference Rate rises, any interest payment obligations would increase and have a negative effect on our cash flow and financial condition. We currently do not maintain any hedging contracts that would limit our exposure to variable rates of interest when we have outstanding borrowings. As of December 31, 2023, we had $13.2 million of borrowings under our Facility. If market rates of interest on all our revolving debt as of December 31, 2023, which is subject to variable rates, permanently increased by 1%, the increase in interest expense on all revolving debt would decrease future income before provision for income taxes and cash flows by approximately $0.1 million annually. If market rates of interest on all our revolving debt, which is subject to variable rates as of December 31, 2023, permanently decreased by 1%, the decrease in interest expense on all debt would increase future income before provision for income taxes and cash flows by approximately $0.1 million annually. Borrowings under our Equipment Notes are at fixed rates established on the date the note was executed. 44 TABLE OF CONTENTS