EX-12 3 d158662dex12.htm EX-12 EX-12

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.

 

     Fiscal years ended December 31,  
(dollars in thousands)    2015     2014     2013      2012     2011  

Income (loss) from continuing operations before income taxes

    $ (1,164,309 )    $ 222,939      $ 301,469       $ 39,402      $ 319,002   

(Income) loss from equity investments

      (18 )      133        238         205        295   

Distribution from equity investments

      —          303        144         —          —     

Interest expense

      31,464        16,904        14,578         13,878        4,167   

Amortization of capitalized interest

      38,695 (3)      5,454 (3)      3,080         4,922 (3)      1,654   

Amortization of bond discount

      499        467        437         259        —     
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Earnings

    $ (1,593,669 )    $ 246,200      $ 319,946       $ 58,666      $ 325,118   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Fixed charges(1):

            

Interest expense

    $ 31,464      $ 16,904      $ 14,578       $ 13,878      $ 4,167   

Capitalized interest

      21,711        32,246        33,670         18,867        11,478   

Amortization of bond discount

      499        467        437         259        —     
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total fixed charges

    $ 53,674      $ 49,617      $ 48,685       $ 33,004      $ 15,645   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Ratio of earnings to fixed charges(2)

      —   (4)      5.0x        6.6x         1.8x        20.8x   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

(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) Amortization of capitalized interest includes the proportionate amount related to the ceiling test write-down.
(4) Earnings for year ended December 31, 2015 were insufficient to cover fixed charges by $1.6 billion.