Exhibit 12.1
PIONEER NATURAL RESOURCES COMPANY
RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in thousands, except ratios)
RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in thousands, except ratios)
For the nine | ||||||||||||||||||||||||
months ended | ||||||||||||||||||||||||
September 30, | For the year ended December 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||
Income from continuing operations before income taxes and cumulative effect of change in accounting principle | $ | 249,807 | $ | 291,238 | $ | 333,536 | $ | 215,257 | $ | 155,422 | $ | 45,378 | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Add fixed charges and preferred stock dividends: | ||||||||||||||||||||||||
Interest expense | 94,432 | 107,050 | 124,898 | 99,971 | 86,634 | 84,729 | ||||||||||||||||||
Interest capitalized (a) | 26,276 | 12,166 | — | — | 1,009 | 1,502 | ||||||||||||||||||
Rental expense attributable to interest | 2,083 | 1,949 | 1,814 | 1,233 | 308 | 281 | ||||||||||||||||||
Preferred stock dividend requirements of consolidated subsidiaries | — | — | — | — | — | — | ||||||||||||||||||
Preferred stock dividend requirements of the Company | — | — | — | — | — | — | ||||||||||||||||||
Total fixed charges and preferred stock dividends | 122,791 | 121,165 | 126,712 | 101,204 | 87,951 | 86,512 | ||||||||||||||||||
Deduct: | ||||||||||||||||||||||||
Minority interests in the earnings of consolidated subsidiaries | 1,019 | 2,263 | 1,724 | (43 | ) | (43 | ) | (60 | ) | |||||||||||||||
Interest capitalized (a) | 26,276 | 12,166 | — | — | 1,009 | 1,502 | ||||||||||||||||||
Total deductions | 27,295 | 14,429 | 1,724 | (43 | ) | 966 | 1,442 | |||||||||||||||||
Earnings | $ | 345,303 | $ | 397,974 | $ | 458,524 | $ | 316,504 | $ | 242,407 | $ | 130,448 | ||||||||||||
Ratio of earnings to fixed charges (b) | 2.81 | 3.28 | 3.62 | 3.13 | 2.76 | 1.51 | ||||||||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends (c) | 2.81 | 3.28 | 3.62 | 3.13 | 2.76 | 1.51 | ||||||||||||||||||
(a) | Excludes capitalized interest from discontinued operations of $1.1 million, $2.0 million, $4.4 million and $10.7 million for the years ended December 31, 2005, 2004, 2003, and 2002, respectively. | |
(b) | The ratio has been computed by dividing earnings by fixed charges. For purposes of computing the ratio: |
• | earnings consist of income from continuing operations before income taxes, cumulative effect of change in accounting principle, adjustments for minority interests in the earnings of consolidated subsidiaries and adjustment for capitalized interest, plus fixed charges; and | ||
• | fixed charges consist of interest expense, capitalized interest and the portion of rental expense deemed to be representative of the interest component of rental expense. |
(c) | The ratio has been computed by dividing earnings by fixed charges and preferred stock dividends. For purposes of computing the ratio: |
• | earnings consist of income from continuing operations before income taxes, cumulative effect of change in accounting principle, adjustments for minority interests in the earnings of consolidated subsidiaries and adjustment for capitalized interest, plus fixed charges and preferred stock dividends, net of preferred stock dividends of a consolidated subsidiary; and | ||
• | fixed charges and preferred stock dividends consist of interest expense, capitalized interest and the portion of rental expense deemed to be representative of the interest component of rental expense, preferred stock dividends of a consolidated subsidiary and preferred stock dividends. |