Exhibit 12.1
PLAINS EXPLORATION & PRODUCTION COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollar Amounts in Thousands)
Year Ended December 31, | ||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | ||||||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | $ | (344,870 | ) | $ | 984,607 | $ | 268,048 | $ | (1,152,683 | ) | $ | 217,180 | ||||||||
Fixed charges (see below) | 63,161 | 76,640 | 111,640 | 200,881 | 202,737 | |||||||||||||||
Amortization of capitalized interest | 1,356 | 1,378 | 1,850 | 2,486 | 7,606 | |||||||||||||||
Interest capitalized | (3,467 | ) | (7,909 | ) | (36,353 | ) | (71,801 | ) | (116,231 | ) | ||||||||||
Total adjusted earnings available for payment of fixed charges | $ | (283,820 | ) | $ | 1,054,716 | $ | 345,185 | $ | (1,021,117 | ) | $ | 311,292 | ||||||||
Fixed charges(a) | ||||||||||||||||||||
Interest expense | $ | 55,421 | $ | 64,675 | $ | 68,908 | $ | 116,991 | $ | 73,811 | ||||||||||
Interest capitalized | 3,467 | 7,909 | 36,353 | 71,801 | 116,231 | |||||||||||||||
Amortization of debt-related expenses | 3,140 | 1,990 | 3,983 | 8,484 | 8,355 | |||||||||||||||
Rental expense representative of interest factor | 1,133 | 2,066 | 2,396 | 3,605 | 4,340 | |||||||||||||||
Total fixed charges | $ | 63,161 | $ | 76,640 | $ | 111,640 | $ | 200,881 | $ | 202,737 | ||||||||||
Ratio of earnings to fixed charges | (b | ) | 13.8 | 3.1 | (c | ) | 1.5 |
(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 $1,222 million, primarily due to impairment of oil and gas properties recorded in December 2008. |