EX-12 3 d404197dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

Whiting Petroleum Corporation and Subsidiaries

Ratio of Earnings to Fixed Charges

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

(dollars in thousands)

 

     Six Months
Ended
    Year Ended December 31,  
     June, 2012     2011     2010     2009     2008     2007  

Fixed charges:

            

Interest expensed

   $ 31,670      $ 53,834      $ 48,486      $ 53,582      $ 59,010      $ 65,977   

Interest capitalized

     1,432        3,574        2,920        3,406        3,129        3,664   

Amortized premiums, discounts and capitalized expenses related to indebtedness

     4,691        8,682        10,592        11,026        6,068        6,527   

Estimate of interest within rental expense

     521        883        684        603        431        424   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

   $ 38,314      $ 66,973      $ 62,682      $ 68,617      $ 68,638      $ 76,592   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings:

            

Income (loss) before income taxes

   $ 398,725      $ 780,319      $ 541,443      $ (162,835   $ 408,820      $ 207,162   

Income from equity investees

     (260     (1,032     (1,311     (1,581     (1,625     (1,365

Fixed charges (above)

     38,314        66,973        62,682        68,617        68,638        76,592   

Amortization of capitalized interest

     872        1,409        1,117        776        463        97   

Distributed income from equity investees

     381        1,533        1,323        1,780        1,175        928   

Interest capitalized

     (1,432     (3,574     (2,920     (3,406     (3,129     (3,664

Noncontrolling interest in pre-tax income of subsidiaries

     55        59        —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings

   $ 436,655      $ 845,687      $ 602,334      $ (96,649   $ 474,942      $ 279,750   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges (unaudited) (1)

     11.40     12.63     9.61     —          6.92     3.65

Fixed charges and preferred stock dividends:

            

Fixed charges (above)

   $ 38,314      $ 66,973      $ 62,682      $ 68,617      $ 68,638      $ 76,592   

Preferred stock dividends (2)

     862        1,704        26,516        15,695        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges and preferred stock dividends

   $ 39,176      $ 68,677      $ 89,198      $ 84,312      $ 68,638      $ 76,592   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges and preferred stock dividends (unaudited) (3)

     11.15     12.31     6.75     —          6.92     3.65

 

(1) For the year ended December 31, 2009, earnings were inadequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.00x (one-to-one coverage) was $165.3 million for the year ended December 31, 2009.
(2) Preferred stock dividends represent pre-tax earnings required to cover any preferred stock dividend requirements using our effective tax rate for the relevant period.
(3) For the year ended December 31, 2009, earnings were inadequate to cover fixed charges and preferred stock dividends, and the ratio of earnings to fixed charges and preferred stock dividends therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges and preferred stock dividends to equal 1.00x (one-to-one coverage) was $181.0 million for the year ended December 31, 2009.