Exhibit 12.1
WHITING PETROLEUM CORPORATION AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in thousands)
Year Ended December 31, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expensed | $ | 53,582 | $ | 59,010 | $ | 65,977 | $ | 66,265 | $ | 35,245 | ||||||||||
Interest capitalized | 3,406 | 3,129 | 3,664 | 556 | - | |||||||||||||||
Preferred stock dividends (1) | 15,695 | - | - | - | - | |||||||||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness | 11,026 | 6,068 | 6,527 | 7,224 | 6,802 | |||||||||||||||
Estimate of interest within rental expense | 603 | 431 | 424 | 386 | 298 | |||||||||||||||
Total fixed charges | $ | 84,312 | $ | 68,638 | $ | 76,592 | $ | 74,431 | $ | 42,345 | ||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) before income taxes | $ | (162,835 | ) | $ | 408,820 | $ | 207,162 | $ | 233,272 | $ | 196,098 | |||||||||
Income from equity investees | (1,581 | ) | (1,625 | ) | (1,365 | ) | (282 | ) | (409 | ) | ||||||||||
Fixed charges (above) | 84,312 | 68,638 | 76,592 | 74,431 | 42,345 | |||||||||||||||
Preferred stock dividends (1) | (15,695 | ) | - | - | - | - | ||||||||||||||
Amortization of capitalized interest | 776 | 463 | 97 | 41 | 41 | |||||||||||||||
Distributed income from equity investees | 1,780 | 1,775 | 928 | 987 | 657 | |||||||||||||||
Interest capitalized | (3,406 | ) | (3,129 | ) | (3,664 | ) | (556 | ) | - | |||||||||||
Total earnings | $ | (96,649 | ) | $ | 474,942 | $ | 279,750 | $ | 307,893 | $ | 238,732 | |||||||||
Ratio of earnings to fixed charges and preferred stock dividends (unaudited) (2) | — | 6.92 | x | 3.65 | x | 4.14 | x | 5.64 | x |
(1) | Preferred stock dividends represent pre-tax earnings required to cover any preferred stock dividend requirements using our effective tax rate for the relevant period. |
(2) | For the year ended December 31, 2009, earnings were inadequate to cover fixed charges and preferred stock dividends, and the ratio of earnings to fixed charges and preferred stock dividends therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges and preferred stock dividends to equal 1.00x (one-to-one coverage) was $181.0 million for the year ended December 31, 2009. |