Continental Resources, Inc. | Exhibit 12.1 |
Ratio of Earnings to Fixed Charges
(in thousands, except ratio)
Year Ended December 31, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
Pro forma | Historical | Pro forma | Historical | |||||||||||||||||||||||||||
2008 | 2008 | 2007 | 2006 | 2005 | 2004 | 2009 | 2009 | 2008 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||
Net income (loss) before income taxes | $ | 518,530 | $ | 518,530 | $ | 296,778 | $ | 252,956 | $ | 195,446 | $ | 26,816 | $ | (21,113 | ) | $ | (21,113 | ) | $ | 341,192 | ||||||||||
Interest expense | 12,188 | 12,188 | 12,939 | 11,310 | 14,220 | 23,617 | 9,310 | 9,310 | 6,276 | |||||||||||||||||||||
Pro forma adjustments: | ||||||||||||||||||||||||||||||
Add reduction in revolver interest expense | 11,103 | — | — | — | — | — | 8,296 | — | — | |||||||||||||||||||||
Add interest income on excess cash | 1,209 | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Less interest expense on notes | (24,918 | ) | — | — | — | — | — | (12,430 | ) | — | — | |||||||||||||||||||
Less amorization of note costs | (775 | ) | — | — | — | — | — | (388 | ) | — | — | |||||||||||||||||||
Earnings | $ | 517,337 | $ | 530,718 | $ | 309,717 | $ | 264,266 | $ | 209,666 | $ | 50,433 | $ | (16,325 | ) | $ | (11,803 | ) | $ | 347,468 | ||||||||||
Fixed charges: | ||||||||||||||||||||||||||||||
Interest expense | $ | 12,188 | $ | 12,188 | $ | 12,939 | $ | 11,310 | $ | 14,220 | $ | 23,617 | $ | 9,310 | $ | 9,310 | $ | 6,276 | ||||||||||||
Pro forma adjustments: | ||||||||||||||||||||||||||||||
Less reduction in revolver interest | (11,103 | ) | — | — | — | — | — | (8,296 | ) | — | — | |||||||||||||||||||
Add interest expense on notes | 24,918 | — | — | — | — | — | 12,430 | — | — | |||||||||||||||||||||
Add amorization of note costs | 775 | — | — | — | — | — | 388 | — | — | |||||||||||||||||||||
Fixed charges | $ | 26,778 | $ | 12,188 | $ | 12,939 | $ | 11,310 | $ | 14,220 | $ | 23,617 | $ | 13,832 | $ | 9,310 | $ | 6,276 | ||||||||||||
Ratio of earning to fixed charges | 19.3 | 43.6 | 23.9 | 23.4 | 14.7 | 2.1 | n/a | n/a | 55.4 | |||||||||||||||||||||