EX-12.1 2 a05-15497_1ex12d1.htm EX-12.1

Exhibit 12.1

 

Clayton Williams Energy, Inc.
Computation of Ratio of Earnings to Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months

 

 

 

Year ended December 31,

 

ended June 30,

 

 

 

2000

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

(In thousands except ratios)

 

EARNINGS:

 

 

 

Net income (loss) from continuing operations

 

$

27,441

 

$

(5,546

)

$

(5,338

)

$

22,649

 

$

(14,028

)

$

958

 

Add: Interest expense included in earnings(1)

 

2,310

 

2,925

 

4,006

 

3,138

 

7,877

 

4,932

 

Total earnings

 

$

29,751

 

$

(2,621

)

$

(1,332

)

$

25,787

 

$

(6,151

)

$

5,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense included
in earnings(1)

 

$

2,310

 

$

2,925

 

$

4,006

 

$

3,138

 

$

7,877

 

$

4,932

 

Capitalized interest

 

483

 

523

 

600

 

1,057

 

877

 

713

 

Total fixed charges

 

$

2,793

 

$

3,448

 

$

4,606

 

$

4,195

 

$

8,754

 

$

5,645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

10.7

x

—

 

—

 

6.1

x

—

 

1.0

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Deficiency

 

 

 

$

6,069

 

$

5,938

 

 

 

$

14,905

 

 

 

 

(1)  Amortization of deferred financing costs is included in interest expense.

(2)  Interest factor attributable to rental expense is not significant.