Continental Resources, Inc. | Exhibit 12.1 |
Ratio of Earnings to Fixed Charges
(in thousands, except ratio)
Year Ended December 31, | Nine Months Ended September 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 | $ | 33,604 | $ | 33,604 | $ | 510,031 | |||||||||||
Interest expense | 12,188 | 12,188 | 12,939 | 11,310 | 14,220 | 23,617 | 14,073 | 14,073 | 8,782 | ||||||||||||||||||||
Pro forma adjustments: | |||||||||||||||||||||||||||||
Add reduction in revolver interest expense | 11,103 | — | — | — | — | — | 6,470 | — | — | ||||||||||||||||||||
Add interest income on excess cash | 1,209 | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Less interest expense on notes | (24,918 | ) | — | — | — | — | — | (18,647 | ) | — | — | ||||||||||||||||||
Less amorization of note costs | (775 | ) | — | — | — | — | — | (581 | ) | — | — | ||||||||||||||||||
Earnings | $ | 517,337 | $ | 530,718 | $ | 309,717 | $ | 264,266 | $ | 209,666 | $ | 50,433 | $ | 34,919 | $ | 47,677 | $ | 518,813 | |||||||||||
Fixed charges: | |||||||||||||||||||||||||||||
Interest expense | $ | 12,188 | $ | 12,188 | $ | 12,939 | $ | 11,310 | $ | 14,220 | $ | 23,617 | $ | 14,073 | $ | 14,073 | $ | 8,782 | |||||||||||
Pro forma adjustments: | |||||||||||||||||||||||||||||
Less reduction in revolver interest | (11,103 | ) | — | — | — | — | — | (6,470 | ) | — | — | ||||||||||||||||||
Add interest expense on notes | 24,918 | — | — | — | — | — | 18,647 | — | — | ||||||||||||||||||||
Add amorization of note costs | 775 | — | — | — | — | — | 581 | — | — | ||||||||||||||||||||
Fixed charges | $ | 26,778 | $ | 12,188 | $ | 12,939 | $ | 11,310 | $ | 14,220 | $ | 23,617 | $ | 26,831 | $ | 14,073 | $ | 8,782 | |||||||||||
Ratio of earning to fixed charges | 19.3 | 43.6 | 23.9 | 23.4 | 14.7 | 2.1 | 1.3 | 3.4 | 59.1 | ||||||||||||||||||||