Exhibit 12.1
Complete Production Services, Inc.
Calculation of Ratio of Earnings to Fixed Charges, as Defined
Updated May 25, 2007
Calculation of Ratio of Earnings to Fixed Charges, as Defined
Updated May 25, 2007
Year | Year | Year | Year | Year | Quarter | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
12/31/02 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06 | 3/31/07 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pre-tax income before M.I. | (1,354 | ) | 1,375 | 26,465 | 84,420 | 215,122 | 76,790 | |||||||||||||||||
Fixed charges | 1,482 | 3,141 | 8,078 | 25,138 | 44,336 | 16,452 | ||||||||||||||||||
Amort. of capitalized interest | — | — | — | — | 17 | (c) | 29 | (c) | ||||||||||||||||
Less: interest capitalized | — | — | — | — | (2,058 | ) | (427 | ) | ||||||||||||||||
Less: minority interest | — | (247 | ) | (4,705 | ) | (384 | ) | 49 | (261 | ) | ||||||||||||||
Total earnings | 128 | 4,269 | 29,838 | 109,174 | 257,467 | 92,583 | ||||||||||||||||||
FixedCharges: | ||||||||||||||||||||||||
Interest expensed | 1,260 | 2,683 | 7,218 | 23,875 | 40,308 | 15,108 | ||||||||||||||||||
Interest capitalized | — | — | — | — | 2,058 | 427 | ||||||||||||||||||
Deferred financing fees | 101 | (b) | 212 | (b) | 465 | 585 | 451 | 517 | ||||||||||||||||
Interest in rent expense | 121 | (a) | 246 | 395 | 678 | 1,519 | 400 | (d) | ||||||||||||||||
Total fixed charges | 1,482 | 3,141 | 8,078 | 25,138 | 44,336 | 16,452 | ||||||||||||||||||
Ratio of earnings to FC | 0.09 | 1.36 | 3.69 | 4.34 | 5.81 | 5.63 | ||||||||||||||||||
(a) | Calculated at 1/2 of 2003 actuals per audited financial statements for IPS (IPSL was acquired by Sabre in July 2002—thus, the majority of the operating lease arrangements would have only been in place for approx. half of the year). | |
(b) | Projected based upon 2004 actual expense and status of accumulated amortization associated with deferred financing fees on IPS’ books as of that date. Total IPS accumulated amortization at 12/31/04 was $525k, of which $212k related to 2004. A similar amount was allocated to 2003 with the remainder allocated to 2002. | |
(c) | Total capitalized interest assuming a 20 year life (drilling rigs) and assuming amortization for the applicable periods. | |
(d) | Calculated as actual 2006 rent expense at 7.9% (approx. effective annual interest rate of 7.84%) for three months. |