EX-12.1 7 exhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1

Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
Year Ended December 31,
 
2012
 
2011
 
2010
 
2009
 
2008
 
(dollars in thousands)
Earnings:
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes and adjustment for income (loss) from equity investees
$
(383,826
)
 
$
443,905

 
$
(110,047
)
 
$
(300,062
)
 
$
828,369

(Income) loss from equity investees
(1,497
)
 
188

 
(10
)
 
—

 
—

Income (loss) from continuing operations before income taxes but after adjustment for (income) loss from equity investees
(385,323
)
 
444,093

 
(110,057
)
 
(300,062
)
 
828,369

Fixed charges
382,751

 
261,976

 
194,733

 
93,280

 
95,613

Distributed income of equity investees
1,265

 
900

 
854

 
—

 
—

Capitalized interest
(2,326
)
 
(1,868
)
 
(884
)
 
(324
)
 
(875
)
Total earnings available for fixed charges
$
(3,633
)
 
$
705,101

 
$
84,646

 
$
(207,106
)
 
$
923,107

Fixed charges:
 
 
 
 
 
 
 
 
 
Interest and debt expenses
$
379,937

 
$
259,725

 
$
193,510

 
$
92,701

 
$
94,517

Capitalized interest
2,326

 
1,868

 
884

 
324

 
875

Interest portion of rental expense
488

 
383

 
339

 
255

 
221

Total fixed charges
$
382,751

 
$
261,976

 
$
194,733

 
$
93,280

 
$
95,613

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
—

(1) 
2.69

 
—

(1) 
—

(1) 
9.65

(1) 
Earnings for the year ended December 31, 2012, were insufficient to cover fixed charges by approximately $386 million, primarily due to noncash impairment charges of approximately $422 million associated with proved oil and natural gas properties related to a decline in commodity prices and noncash charges of approximately $278 million associated with changes in mark-to-market values related to oil and natural gas derivatives.  Earnings for the years ended December 31, 2010, and December 31, 2009, were insufficient to cover fixed charges by approximately $110 million and $300 million, respectively, primarily due to noncash charges of approximately $232 million and $591 million, respectively, associated with changes in mark-to-market values related to oil and natural gas derivatives.