Petrohawk Energy 10-Q 2010 Q3 Quarterly report

Exhibit 12.1

Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends

(In thousands, except ratios)

	Nine Months Ended September 30,						Years Ended December 31,
	2010			2009			2009			2008			2007		2006		2005
Earnings:
Pre-tax income (loss)	$	438,892		$	(1,712,135	)	$	(1,780,419	)	$	(533,005	)	$	86,035	$	189,098	$	(25,697	)
Adjustments:
Equity investment income		(10,619	)		—			—			—			—		—		—
Distributions from equity affiliate		13,190			—			—			—			—		—		—
Pre-tax income (loss), as adjusted	$	441,463		$	(1,712,135	)	$	(1,780,419	)	$	(533,005	)	$	86,035	$	189,098	$	(25,697	)
Fixed charges		240,012			175,517			237,812			156,713			133,474		89,086		25,795
Total earnings	$	681,475		$	(1,536,618	)	$	(1,542,607	)	$	(376,292	)	$	219,509	$	278,184	$	98
Fixed charges:
Interest expense and amortization of finance costs	$	238,471		$	174,270		$	236,119		$	155,361		$	132,264	$	88,414	$	25,551
Rental expense representative of interest		1,541			1,247			1,693			1,352			1,210		672		244
Total fixed charges	$	240,012		$	175,517		$	237,812		$	156,713		$	133,474	$	89,086	$	25,795
Ratio of earnings to fixed charges		2.8			—	(1)		—	(2)		—	(3)		1.6		3.1		—	(4)
Total fixed charges	$	240,012		$	175,517		$	237,812		$	156,713		$	133,474	$	89,086	$	25,795
Pre-tax preferred dividend requirements		—			—			—			—			—		352		680
Total fixed charges plus preference dividends	$	240,012		$	175,517		$	237,812		$	156,713		$	133,474	$	89,438	$	26,475
Ratio of earnings to combined fixed charges and preference dividends		2.8			—	(1)		—	(2)		—	(3)		1.6		3.1		—	(5)

(1) Due to the Company’s loss for the nine months ended September 30, 2009, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.7 billion to achieve a coverage ratio of 1:1.

(2) Due to the Company’s loss in 2009, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.8 billion to achieve a coverage ratio of 1:1.

(3) Due to the Company’s loss in 2008, the ratio coverage was less than 1:1. The Company must generate additional earnings of $533.0 million to achieve a coverage ratio of 1:1.

(4) Due to the Company’s loss in 2005, the ratio coverage was less than 1:1. The Company must generate additional earnings of $25.7 million to achieve a coverage ratio of 1:1.

(5) Due to the Company’s loss in 2005, the ratio coverage was less than 1:1. The Company must generate additional earnings of $26.4 million to achieve a coverage ratio of 1:1.