EXHIBIT 12
DENBURY RESOURCES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, | Nine months ended Sept. 30 | |||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2008 | |||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pretax income from continuing operations | $ | 80,153 | $ | 121,840 | $ | 248,041 | $ | 329,574 | $ | 393,414 | $ | 553,281 | ||||||||||||
Plus: Equity in (earnings) loss of affiliates | (256 | ) | 136 | (314 | ) | (776 | ) | 1,110 | (3,796 | ) | ||||||||||||||
Plus: Distributions of equity investee | 57 | 508 | 528 | 925 | 1,427 | 4,853 | ||||||||||||||||||
Plus: Amortization of capitalized interest | — | — | — | 53 | 169 | 89 | ||||||||||||||||||
Plus: Fixed charges (below) | 23,893 | 20,412 | 21,059 | 37,533 | 55,917 | 47,859 | ||||||||||||||||||
Less: Interest capitalized | (1,649 | ) | (11,333 | ) | (20,385 | ) | (19,524 | ) | ||||||||||||||||
Earnings | $ | 103,847 | $ | 142,896 | $ | 267,665 | $ | 355,976 | $ | 431,652 | $ | 582,762 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense | $ | 23,201 | $ | 19,468 | $ | 17,978 | $ | 23,575 | $ | 30,830 | $ | 23,988 | ||||||||||||
Capitalized interest | — | — | 1,649 | 11,333 | 20,385 | 19,524 | ||||||||||||||||||
Interest component of rent expense | 692 | 944 | 1,432 | 2,625 | 4,702 | 4,347 | ||||||||||||||||||
Imputed preferred dividend | — | — | — | — | — | — | ||||||||||||||||||
Preferred dividend tax effect | — | — | — | — | — | — | ||||||||||||||||||
Fixed charges | $ | 23,893 | $ | 20,412 | $ | 21,059 | $ | 37,533 | $ | 55,917 | $ | 47,859 | ||||||||||||
Ratio of earnings to fixed charges | 4.3 | 7.0 | 12.7 | 9.5 | 7.7 | 12.2 | ||||||||||||||||||