EX-12.1 4 dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of computation of ratio of earnings to fixed charges

Exhibit 12.1

PETROLEUM DEVELOPMENT CORPORATION

Statement of Computation of Ratio of Earnings to Fixed Charges

 

     Year Ended December 31,  
     2007     2006     2005     2004     2003  
     (dollars in thousands)  

Earnings

           

Income before income taxes

    $ 54,190     $ 387,409     $ 66,128     $ 53,478     $ 34,618  

Fixed charges (see below)

      12,796       4,187       317       338       1,008  

Amortization of capitalized interest

      111       60       —         —         —    

Interest capitalized

      (3,023 )     (1,620 )     —         —         —    
                                        

Total adjusted earnings available for fixed charges

    $ 64,074     $ 390,036     $ 66,445     $ 53,816     $ 35,626  
                                        

Fixed Charges

           

Interest and debt expense(a)

    $ 9,279     $ 2,443     $ 217     $ 238     $ 816  

Interest capitalized

      3,023       1,620       —         —         —    

Interest component of rental expense(b)

     494       124       100       100       192  
                                        

Total fixed charges

    $ 12,796     $ 4,187     $ 317     $ 338     $ 1,008  
                                        

Ratio of Earnings to Fixed Charges

      5.0 x     93.2 x     209.6 x     159.2 x     35.4 x
                                        

 

(a) Represents interest expense on long-term debt and amortization of debt issuance costs.

 

(b) Represents the portion of rental expense which we believe represents an interest component.