EX-12 3 d437925dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12

COMPUTATION RATIO OF EARNINGS TO FIXED CHARGES

Unit Corporation

Ratio of Earnings to Fixed Charges

The table below sets forth the ratios of earnings to fixed charges of the Company and its consolidated subsidiaries for the periods indicated. The ratios have been computed using the amounts for the Company and, its consolidated subsidiaries. Earnings available for fixed charges represent earnings from continuing operations before income taxes and fixed charges less income from investments accounted for by the equity method. Fixed charges represent interest incurred and guaranteed plus that portion of rental expense deemed to be the equivalent of interest.

 

     Nine Months Ended
September 30,		     Year Ended December 31,  
(dollars in thousands)    2012     2011     2011     2010     2009     2008     2007  

Income (loss) from continuing operations before income taxes

    $ 130,850      $ 234,481      $ 319,002      $ 237,221      $ (87,726 )    $ 225,579      $ 413,411   

Interest expense

      11,301        2,078        4,167        —          539        1,304        6,362   

Amortization of capitalized interest

      1,778        1,288        1,833        1,573        1,200        821        447   

Amortization of bond discount

      154        —          —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

    $ 144,083      $ 237,847      $ 325,002      $ 238,794      $ (85,987 )    $ 227,704      $ 420,220   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges(1):

               

Interest expense

    $ 11,301      $ 2,078      $ 4,167      $ —        $ 539      $ 1,304      $ 6,362   

Capitalized interest

      9,312        8,707        11,478        4,526        5,071        6,035        4,582   

Amortization of bond discount

      154        —          —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 20,767      $ 10,785      $ 15,645      $ 4,526      $ 5,610      $ 7,339      $ 10,944   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges(2)

      6.9 x      22.1 x      20.8 x      52.8 x      — (3)      31.0 x      38.4 x 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Fixed charges are determined as defined in instructions for Item 503 of Regulation S-K of the Securities Act.
(2) There were no shares of preferred stock outstanding during any of the time periods indicated in the table.
(3) Earnings for the year ended December 31, 2009 were insufficient to cover fixed charges by $87.7 million due to non-cash ceiling test write, down of $281.2 million pre-tax ($175.1 million, net of tax) during the quarter ended March 31, 2009.