EX-12 2 0002.txt Exhibit No. 12. Questar Market Resources, Inc. and Subsidiaries Ratio of Earnings to Fixed Charges (Unaudited)
12 months ended June 30, 2000 1999 (Dollars in Thousands) Earnings Income from continuing operations before income taxes $87,969 $11,347 Less income Canyon Creek (211) (238) Plus distribution from Canyon Creek 285 277 Plus debt expense 20,483 16,064 Plus interest capitalized during construction 192 1,148 Plus interest portion of rental expense 994 815 $109,712 $29,413 Fixed Charges Debt expense $20,483 $16,064 Plus interest capitalized during construction 192 1,148 Plus interest portion of rental expense 994 815 $21,669 $18,027 Ratio of Earnings to Fixed Charges 5.06 1.63
1/ For purposes of this presentation, earnings represent income from continuing operations before income taxes and fixed charges. Fixed charges consist of total interest charges, amortization of debt issuance costs, and the interest portion of rental costs (which is estimated at 50%). 2/ Income from continuing operations before income taxes includes QMR's 50% share of pretax earnings of Blacks Fork. 3/ Distributions from Canyon Creek are included and earnings are excluded because QMR owns less than 50%. QMR's ownership interest in Canyon Creek is 15%. 4/ Write-down of investment in full-cost oil and gas properties reduced income from continuing operations before income taxes by $31 million in the fourth quarter of 1998.