Exhibit 12.1
DENBURY RESOURCES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, | ||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax income from continuing operations | $ | 70,315 | $ | 80,153 | $ | 121,840 | $ | 248,041 | $ | 329,574 | ||||||||||
Plus: Equity in (earnings) loss of affiliates | (55 | ) | (256 | ) | 136 | (314 | ) | (776 | ) | |||||||||||
Plus: Distributions of equity investee | — | 57 | 508 | 528 | 925 | |||||||||||||||
Plus: Amortization of capitalized interest | — | — | — | — | 53 | |||||||||||||||
Plus: Fixed charges (below) | 27,408 | 23,893 | 20,412 | 21,059 | 37,533 | |||||||||||||||
Less: Interest capitalized | — | — | — | (1,649 | ) | (11,333 | ) | |||||||||||||
Earnings | $ | 97,668 | $ | 103,847 | $ | 142,896 | $ | 267,665 | $ | 355,976 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 26,833 | $ | 23,201 | $ | 19,468 | $ | 17,978 | $ | 23,575 | ||||||||||
Capitalized interest | — | — | — | 1,649 | 11,333 | |||||||||||||||
Interest component of rent expense | 575 | 692 | 944 | 1,432 | 2,625 | |||||||||||||||
Imputed preferred dividend | — | — | — | — | — | |||||||||||||||
Preferred dividend tax effect | — | — | — | — | — | |||||||||||||||
Fixed charges | $ | 27,408 | $ | 23,893 | $ | 20,412 | $ | 21,059 | $ | 37,533 | ||||||||||
Ratio of earnings to fixed charges | 3.6 | 4.3 | 7.0 | 12.7 | 9.5 | |||||||||||||||