EXHIBIT 12.2
DENBURY RESOURCES INC.
COMPUTATION OF PROFORMA RATIO OF EARNINGS TO FIXED CHARGES
COMPUTATION OF PROFORMA RATIO OF EARNINGS TO FIXED CHARGES
Year ended | Nine months ended | |||||||
December 30, 2007 | September 30, 2008 | |||||||
(amounts in thousands) | ||||||||
Earnings: | ||||||||
Pretax income from continuing operations (1) | $ | 384,436 | $ | 549,598 | ||||
Plus: Equity in (earnings) loss of affiliates | 1,110 | (3,796 | ) | |||||
Plus: Distributions of equity investee | 1,427 | 4,853 | ||||||
Plus: Amortization of capitalized interest | 169 | 89 | ||||||
Plus: Fixed charges (below) | 64,895 | 51,542 | ||||||
Less: Interest capitalized | (20,385 | ) | (19,524 | ) | ||||
Earnings | $ | 431,652 | $ | 582,762 | ||||
Fixed Charges: | ||||||||
Interest expense | $ | 30,830 | $ | 23,988 | ||||
Capitalized interest | 20,385 | 19,524 | ||||||
Interest component of rent expense | 4,702 | 4,347 | ||||||
Imputed preferred dividend | — | — | ||||||
Preferred dividend tax effect | — | — | ||||||
Adjustments: | ||||||||
Estimated net increase in interest expense from refinancing | 8,978 | 3,683 | ||||||
Fixed charges | $ | 64,895 | $ | 51,542 | ||||
Ratio of earnings to fixed charges | 6.7 | 11.3 | ||||||
(1) | Adjusted for estimated net increase in interest expense from refinancing. |