Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
| Year Ended December 31 | ||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
| (Dollars in thousands, except ratios) | ||||||||||||||||||||
| Earnings: | ||||||||||||||||||||
| Pretax income (loss) excluding income or loss from equity investments | $ | 156,210 | $ | 264,261 | $ | 6,864 | $ | 105,435 | $ | (34,444 | ) | |||||||||
| Adjustments: | ||||||||||||||||||||
| Fixed charges | 100,071 | 84,678 | 82,104 | 66,614 | 53,067 | |||||||||||||||
| Distributed income from equity investments | 1,672 | — | — | 17,678 | 49,686 | |||||||||||||||
| Capitalized interest, net of amortization | (16,849 | ) | (14,578 | ) | (4,248 | ) | (162 | ) | — | |||||||||||
| Arch Western Resources, LLC dividends on preferred membership interest | (85 | ) | (96 | ) | (96 | ) | (96 | ) | (95 | ) | ||||||||||
| Total earnings | $ | 241,019 | $ | 334,265 | $ | 84,624 | $ | 189,469 | $ | 68,214 | ||||||||||
| Fixed charges: | ||||||||||||||||||||
| Interest expense | $ | 74,865 | $ | 64,364 | $ | 72,409 | $ | 62,634 | $ | 50,133 | ||||||||||
| Capitalized interest | 17,967 | 14,807 | 4,248 | 162 | — | |||||||||||||||
| Arch Western Resources, LLC dividends on preferred membership interest | 85 | 96 | 96 | 96 | 95 | |||||||||||||||
| Portions of rent which represent an interest factor | 7,154 | 5,411 | 5,351 | 3,722 | 2,839 | |||||||||||||||
| Total fixed charges | $ | 100,071 | $ | 84,678 | $ | 82,104 | $ | 66,614 | $ | 53,067 | ||||||||||
| Preference dividends | 219 | 378 | 15,579 | 7,187 | 6,589 | |||||||||||||||
| Total fixed charges and preference dividends | $ | 100,290 | $ | 85,056 | $ | 97,683 | $ | 73,801 | $ | 59,656 | ||||||||||
| Ratio of earnings to fixed charges and preference dividends | 2.40 | x | 3.93 | x | (a | ) | 2.57 | x | 1.14 | x | ||||||||||
| (a) | Combined fixed charges and preference dividends exceeded earnings by $13.1 million for the year ended December 31, 2005. |