Exhibit 12.1
PLAINS EXPLORATION & PRODUCTION COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (a)
(Dollar Amounts in Thousands)
Year Ended December 31, | ||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
Pre-tax income from continuing operations | $ | 984,607 | $ | (344,870 | ) | $ | 2,023 | $ | 80,539 | $ | 42,969 | |||||||||
Fixed charges (see below) | 76,640 | 63,161 | 47,693 | 29,160 | 23,544 | |||||||||||||||
Amortization of capitalized interest | 1,378 | 1,356 | 1,163 | 711 | 493 | |||||||||||||||
Interest capitalized | (7,909 | ) | (3,467 | ) | (6,985 | ) | (3,232 | ) | (2,387 | ) | ||||||||||
Total adjusted earnings available for payment of fixed charges | $ | 1,054,716 | $ | (283,820 | ) | $ | 43,894 | $ | 107,178 | $ | 64,619 | |||||||||
Fixed Charges | ||||||||||||||||||||
Interest expense | $ | 64,675 | $ | 55,421 | $ | 37,294 | $ | 23,778 | $ | 19,377 | ||||||||||
Interest capitalized | 7,909 | 3,467 | 6,985 | 3,232 | 2,387 | |||||||||||||||
Amortization of debt-related expenses | 1,990 | 3,140 | 2,295 | 1,542 | 1,550 | |||||||||||||||
Rental expense representative of interest factor | 2,066 | 1,133 | 1,119 | 608 | 230 | |||||||||||||||
Total fixed charges | $ | 76,640 | $ | 63,161 | $ | 47,693 | $ | 29,160 | $ | 23,544 | ||||||||||
Ratio of earnings to fixed charges | 13.8 | (b | ) | (c | ) | 3.7 | 2.7 |
(a) | For each of the periods presented there were no outstanding shares of preferred stock. |
(b) | Total fixed charges exceeded total adjusted earnings available for payment of fixed charges by $347.0 million. |
(c) | Total fixed charges exceeded total adjusted earnings available for payment of fixed charges by $3.8 million. |