Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
| Year Ended December 31, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
| (Dollars in thousands, except ratios) | ||||||||||||||||||||
| Earnings: | ||||||||||||||||||||
| Pretax income, excluding income or loss from equity investments | $ | 165,534 | $ | 23,020 | $ | 395,977 | $ | 157,224 | $ | 265,688 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Fixed charges | 153,467 | 118,075 | 99,562 | 103,251 | 87,402 | |||||||||||||||
| Distributed income from equity investments | 9,917 | 5,164 | 2,167 | 1,672 | — | |||||||||||||||
| Capitalized interest, net of amortization | 4,417 | 3,143 | (8,351 | ) | (16,849 | ) | (14,578 | ) | ||||||||||||
| Arch Western Resources, LLC dividends on preferred membership interest | (107 | ) | (58 | ) | (107 | ) | (85 | ) | (99 | ) | ||||||||||
| Total earnings | $ | 333,228 | $ | 149,344 | $ | 489,248 | $ | 245,213 | $ | 338,416 | ||||||||||
| Fixed charges: | ||||||||||||||||||||
| Interest expense | $ | 142,549 | $ | 105,932 | $ | 76,139 | $ | 74,865 | $ | 64,364 | ||||||||||
| Capitalized interest | — | 824 | 11,703 | 17,967 | 14,807 | |||||||||||||||
| Arch Western Resources, LLC dividends on preferred membership interest | 107 | 58 | 107 | 85 | 99 | |||||||||||||||
| Portions of rent which represent an interest factor | 10,811 | 11,261 | 11,613 | 10,334 | 8,135 | |||||||||||||||
| Total fixed charges | 153,467 | 118,075 | 99,562 | 103,251 | 87,405 | |||||||||||||||
| Preferred stock dividends | — | — | 12 | 219 | 378 | |||||||||||||||
| Total fixed charges and preferred stock dividends | $ | 153,467 | $ | 118,075 | $ | 99,574 | $ | 103,470 | $ | 87,783 | ||||||||||
| Ratio of earnings to combined fixed charges and preference dividends | 2.17 | x | 1.26 | x | 4.91 | x | 2.37 | x | 3.86 | x | ||||||||||