Exhibit 12.1
Continental Resources, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except ratio)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, | | | Year Ended December 31, | |
| | Pro forma | | | Historical | | | Pro forma | | | Historical | |
| | 2013 | | | 2013 | | | 2012 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
Earnings | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | $ | 223,217 | | | $ | 223,217 | | | $ | 1,155,196 | | | $ | 1,155,196 | | | $ | 687,445 | | | $ | 258,467 | | | $ | 110,008 | | | $ | 518,530 | |
Plus: Fixed charges | | | 60,709 | | | | 47,475 | | | | 249,319 | | | | 140,708 | | | | 76,722 | | | | 53,147 | | | | 23,232 | | | | 12,188 | |
Less: Capitalized interest | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Pro forma adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Plus : Reduction in revolver interest expense | | | 3,830 | | | | — | | | | 7,917 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Less: Interest expense on Senior Notes | | | (16,644) | | | | — | | | | (113,158 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Less: Amortization of Senior Notes costs | | | (420) | | | | — | | | | (3,370 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings, as defined | | $ | 270,692 | | | $ | 270,692 | | | $ | 1,295,904 | | | $ | 1,295,904 | | | $ | 764,167 | | | $ | 311,614 | | | $ | 133,240 | | | $ | 530,718 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 47,475 | | | $ | 47,475 | | | $ | 140,708 | | | $ | 140,708 | | | $ | 76,722 | | | $ | 53,147 | | | $ | 23,232 | | | $ | 12,188 | |
Capitalized interest | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Pro forma adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Less: Reduction in revolver interest expense | | | (3,830) | | | | — | | | | (7,917 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
Plus: Interest expense on Senior Notes | | | 16,644 | | | | — | | | | 113,158 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Plus: Amortization of Senior Notes costs | | | 420 | | | | — | | | | 3,370 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges, as defined | | $ | 60,709 | | | $ | 47,475 | | | $ | 249,319 | | | $ | 140,708 | | | $ | 76,722 | | | $ | 53,147 | | | $ | 23,232 | | | $ | 12,188 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 4.5x | (1) | | | 5.7x | | | | 5.2x | (1) | | | 9.2x | | | | 10.0x | | | | 5.9x | | | | 5.7x | | | | 43.5x | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) | Because the net proceeds of the offering of the Old Notes were used to repay indebtedness and because of the increase in interest related to the Old Notes, our ratio of earnings to fixed charges changed by 10% or more. After giving effect to the application of the net proceeds of the offering of the Old Notes, our pro forma ratio of earnings to fixed charges for the year ended December 31, 2012 and three months ended March 31, 2013 would have been 5.2x and 4.5x, respectively. |