Exhibit 12.1
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Historical | ||||||||||||||||||||||||||||||||
| Chase Group | ||||||||||||||||||||||||||||||||
| Pro Forma | Concho Resources Inc. | Properties | ||||||||||||||||||||||||||||||
| Nine Months | Nine Months | Year | ||||||||||||||||||||||||||||||
| Ended | Ended | Ended | ||||||||||||||||||||||||||||||
| September 30, | September 30, | Year Ended December 31, | December 31, | |||||||||||||||||||||||||||||
| (in thousands, except ratios) | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2005 | ||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 348,370 | $ | 337,252 | $ | (30,534 | ) | $ | 440,787 | $ | 41,379 | $ | 34,047 | $ | 3,993 | $ | 74,351 | |||||||||||||||
| Interest expense | 66,762 | 34,293 | 28,292 | 29,039 | 36,042 | 30,567 | 3,096 | — | ||||||||||||||||||||||||
| Rental expense attributable to interest | 482 | 482 | 505 | 338 | 102 | 228 | 107 | — | ||||||||||||||||||||||||
| Earnings | $ | 415,614 | $ | 372,027 | $ | (1,737 | ) | $ | 470,164 | $ | 77,523 | $ | 64,842 | $ | 7,196 | $ | 74,351 | |||||||||||||||
| Interest expense | $ | 66,762 | $ | 34,293 | $ | 28,292 | $ | 29,039 | $ | 36,042 | $ | 30,567 | $ | 3,096 | $ | — | ||||||||||||||||
| Capitalized interest | 119 | 119 | 66 | 1,233 | 2,647 | 2,129 | 370 | — | ||||||||||||||||||||||||
| Rental expense attributable to interest | 482 | 482 | 505 | 338 | 102 | 228 | 107 | — | ||||||||||||||||||||||||
| Preferred stock dividends | — | — | — | — | 45 | 1,244 | 4,766 | — | ||||||||||||||||||||||||
| Fixed charges and preferred stock dividends | $ | 67,363 | $ | 34,894 | $ | 28,863 | $ | 30,610 | $ | 38,836 | $ | 34,168 | $ | 8,339 | $ | — | ||||||||||||||||
| Ratio of earnings to fixed charges (a) | 6.17 | 10.66 | (0.06 | ) | 15.36 | 2.00 | 1.97 | 2.01 | NM (c) | |||||||||||||||||||||||
| Insufficient coverage | $ | — | $ | — | $ | (30,600 | ) | $ | — | $ | — | $ | — | $ | — | NM (c) | ||||||||||||||||
| Ratio of earnings to fixed charges and preferred stock dividends (b) | 6.17 | 10.66 | (0.06 | ) | 15.36 | 2.00 | 1.90 | (0.86 | ) | NM (c) | ||||||||||||||||||||||
| Insufficient coverage | $ | — | $ | — | $ | (30,600 | ) | $ | — | $ | — | $ | — | $ | (1,143 | ) | NM (c) | |||||||||||||||
| (a) | The ratio has been computed by dividing earnings by fixed charges. For purposes of computing the ratio: |
| • | earnings includes income (loss) before income taxes adjusted for interest expense and the portion of rental expense deemed to be representative of the interest component of rental expense; and | ||
| • | fixed charges consists of interest expense, capitalized interest and the portion of rental expense deemed to be representative of the interest component of rental expense. |
| (b) | The ratio has been computed by dividing earnings by fixed charges and preferred stock dividends. For purposes of computing the ratio: |
| • | earnings includes income (loss) before income taxes adjusted for interest expense and the portion of rental expense deemed to be representative of the interest component of rental expense; and | ||
| • | fixed charges and preferred stock dividends consists of interest expense, capitalized interest, the portion of rental expense deemed to be representative of the interest component of rental expense and preferred stock dividends. |
| (c) | Not mentionable, as there were no fixed charges or preferred stock dividends for these periods. |