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Exhibit 12.1
Range Resources Corporation |
Computation of Ratio of Earnings to Fixed Charges and Preferred Stock
(in thousands except ratios)
(in thousands except ratios)
6 months | ||||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||
EARNINGS: | ||||||||||||||||||||||||
Income before provision for incomes taxes | $ | 112,733 | $ | 315,701 | $ | 175,985 | $ | 68,310 | $ | 37,431 | $ | 9,474 | ||||||||||||
Subtract: Income from equity method investments | (796 | ) | (548 | ) | $ | — | $ | — | ||||||||||||||||
Add: Fixed charges | 37,022 | 57,466 | 38,312 | 31,160 | 23,277 | 22,980 | ||||||||||||||||||
Total earnings | $ | 148,959 | $ | 372,619 | $ | 214,297 | $ | 99,470 | $ | 60,708 | $ | 32,454 | ||||||||||||
FIXED CHARGES: | ||||||||||||||||||||||||
Interest expense (1) | $ | 36,421 | $ | 55,849 | $ | 37,619 | $ | 22,437 | $ | 21,507 | $ | 22,451 | ||||||||||||
Interest portion of rental expense | 601 | 1,617 | 693 | 528 | 495 | 529 | ||||||||||||||||||
Preferred dividends (2) | — | — | — | 8,195 | 1,275 | — | ||||||||||||||||||
Total fixed charges | $ | 37,022 | $ | 57,466 | $ | 38,312 | $ | 31,160 | $ | 23,277 | $ | 22,980 | ||||||||||||
Ratio of earnings to fixed charges & preferred stock dividends | 4.0 | 6.5 | 5.6 | 3.2 | 2.6 | 1.4 | ||||||||||||||||||
(1) Amortization of debt issuance costs is included in interest expense. | ||||||||||||||||||||||||
(2) Calculated as the $ amount of the dividend divided by (1 minus the effective income tax rate). | ||||||||||||||||||||||||
Amount of preferred dividend | 0 | 0 | — | 5,163 | 803 | — | ||||||||||||||||||
Effective income tax rate (per tax footnote) | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | — |