Exhibit 99.1
ENCORE ACQUISITION COMPANY
RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES
($ in thousands)
($ in thousands)
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Loss before income taxes | $ | (93,078 | ) | $ | (72,024 | ) | $ | (103,866 | ) | $ | (21,977 | ) | ||||
Adjustments: | ||||||||||||||||
Add fixed charges: | ||||||||||||||||
Interest expense | 19,126 | 16,785 | 35,089 | 36,545 | ||||||||||||
Rental expense attributable to interest | 594 | 512 | 1,229 | 935 | ||||||||||||
Total fixed charges | 19,720 | 17,297 | 36,318 | 37,480 | ||||||||||||
Adjusted earnings (loss) | $ | (73,358 | ) | $ | (54,727 | ) | $ | (67,548 | ) | $ | 15,503 | |||||
Ratio of earnings (loss) to fixed charges (a) | (3.7 | ) | (3.2 | ) | (1.9 | ) | 0.4 | |||||||||
(a) | For the three and six months ended June 30, 2009, earnings as defined were inadequate to cover fixed charges as defined by $93.1 million and $103.9 million, respectively. For the three and six months ended June 30, 2008, earnings as defined were inadequate to cover fixed charges as defined by $72.0 million and $22.0 million, respectively. |