EX-12.2 6 h69046exv12w2.htm EX-12.2 exv12w2
Exhibit 12.2
Endeavour International Corporation
Computation of Ratios of Earnings to Fixed Charges and
Preference Securities Dividends
(Amounts in thousands)
                                                 
    Nine Months Ended        
    September 30,     Year Ended December 31,  
    2009     2008     2007     2006     2005     2004  
Earnings:
                                                
Income (Loss) before Minority Interest and Taxes
   $ (21,230 )   $ 49,976     $ (72,352 )   $ 9,825     $ (36,914 )   $ (22,766 )
Adjustments:
                                                
Equity losses
     —       —       —       —       79       201  
 
                                    
Adjusted loss before minority interest and taxes
     (21,230 )     49,976       (72,352 )     9,825       (36,835 )     (22,565 )
 
                                                
Add: Fixed charges
     14,440       26,974       25,640       9,060       5,050       267  
Less: Capitalized interest
     (2,386 )     (3,998 )     (6,358 )     (488 )     —       —  
 
                                    
 
                                                
Earnings
   $ (4,404 )   $ 80,948     $ (40,354 )   $ 19,373     $ (31,785 )   $ (22,298 )
 
                                    
 
                                                
Fixed Charges:
                                                
Interest expense
   $ 12,054     $ 22,976     $ 19,282     $ 8,572     $ 5,050     $ 267  
Preferred dividends
     8,061       10,809       11,238       1,991       158       425  
Capitalized interest
     2,386       3,998       6,358       488       —       —  
 
                                    
Total fixed charges
   $ 22,501     $ 37,783     $ 36,878     $ 11,051     $ 5,208     $ 692  
 
                                    
 
                                                
Ratio of earnings to fixed charges
     —       2.1       —       1.8       —       —  
For purposes of this computation, earnings are defined as pretax earnings from continuing operations before adjustment for minority interest and equity losses in entities with oil and gas properties, plus interest expense, and amortization of debt discount and expense related to indebtedness. Fixed charges are interest expense, including amortization of debt discount and expenses on indebtedness.
Earnings were insufficient to cover fixed charges by $26.9 million for the nine months ended September 30, 2009 and by $77.2 million, $37.0 million and $23.0 million for the years ended December 31, 2007, 2005 and 2004, respectively.