Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
Nine Months Ended September 30 | ||||||||
2007 | 2006 | |||||||
Earnings: | ||||||||
Pretax income excluding income or loss from equity investments | $ | 101,651 | $ | 220,831 | ||||
Adjustments: | ||||||||
Fixed charges | 74,851 | 62,597 | ||||||
Distributed income from equity investments | 1,185 | — | ||||||
Capitalized interest, net of amortization | (16,299 | ) | (10,184 | ) | ||||
Arch Western Resources LLC dividends on preferred membership interest | (78 | ) | (89 | ) | ||||
Total earnings | $ | 161,310 | $ | 273,155 | ||||
Fixed charges: | ||||||||
Interest expense | $ | 53,142 | $ | 48,228 | ||||
Capitalized interest | 16,622 | 10,296 | ||||||
Arch Western Resources LLC dividends on preferred membership interest | 78 | 89 | ||||||
Portions of rent which represent an interest factor | 5,009 | 3,984 | ||||||
Total fixed charges | $ | 74,851 | $ | 62,597 | ||||
Preferred stock dividends | 166 | 289 | ||||||
Total fixed charges and preferred stock dividends | $ | 75,017 | $ | 62,886 | ||||
Ratio of earnings to combined fixed charges and preference dividends | 2.15 | x | 4.34 | x | ||||