EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollar Amounts in Thousands)
Year Ended December 31, | ||||||||||||||||||||||||
Proforma 2003(1) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||||||
Net income | $ | 65,495 | $ | 59,411 | $ | 26,237 | $ | 53,171 | $ | 28,749 | $ | 19,105 | ||||||||||||
Cumulative effect of accounting change | (12,324 | ) | (12,324 | ) | — | 1,522 | — | — | ||||||||||||||||
Provision for income taxes | 41,377 | 33,452 | 16,732 | 34,388 | 16,765 | 5,332 | ||||||||||||||||||
Fixed charges (see below) | 82,946 | 26,407 | 21,994 | 20,707 | 19,806 | 18,588 | ||||||||||||||||||
Interest capitalized | (6,399 | ) | (2,021 | ) | (2,387 | ) | (3,145 | ) | (3,818 | ) | (3,592 | ) | ||||||||||||
Total adjusted earnings available for payment of fixed charges | $ | 171,095 | $ | 104,925 | $ | 62,576 | $ | 106,643 | $ | 61,502 | $ | 39,433 | ||||||||||||
Ratio of earnings to fixed charges | 2.1 | 4.0 | 2.9 | 5.2 | 3.1 | 2.1 | ||||||||||||||||||
Fixed charges | ||||||||||||||||||||||||
Interest expense/debt extinguishment costs | $ | 74,447 | $ | 23,778 | $ | 19,377 | $ | 17,411 | $ | 15,885 | $ | 14,912 | ||||||||||||
Interest capitalized | 6,399 | 2,021 | 2,387 | 3,145 | 3,818 | 3,592 | ||||||||||||||||||
Rental expense representative of interest factor | 2,100 | 608 | 230 | 151 | 103 | 84 | ||||||||||||||||||
Total fixed charges | $ | 82,946 | $ | 26,407 | $ | 21,994 | $ | 20,707 | $ | 19,806 | $ | 18,588 | ||||||||||||
(1) | Reflects the effect of (i) Plains Exploration’s issuance of $75.0 million of 8.75% senior subordinated notes due 2012 on May 30, 2003; (ii) Plains Exploration’s acquisition of 3TEC Energy Corporation on June 4, 2003 and (iii) Plains Exploration’s proposed acquisition of Nuevo Energy Company. Unaudited proforma consolidated financial statements are included in Plains Exploration’s Current Report on Form 8-K dated March 17, 2004. |