Exhibit 12.1
COMSTOCK RESOURCES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Years Ended December 31, | | | Nine Months Ended
September 30, | |
| | | 2007 | | | 2008 | | | 2009 | | | 2010 | | | 2011 | | | 2011 | | | 2012 | |
| | | (In thousands, except ratio) | |
Fixed charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 32,293 | | | $ | 25,336 | | | $ | 16,086 | | | $ | 29,456 | | | $ | 42,688 | | | $ | 30,682 | | | $ | 45,301 | |
Capitalized interest expense | | | — | | | | 2,330 | | | | 6,618 | | | | 12,990 | | | | 13,153 | | | | 10,019 | | | | 16,459 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges | | $ | 32,293 | | | $ | 27,666 | | | $ | 22,704 | | | $ | 42,446 | | | $ | 55,841 | | | $ | 40,701 | | | $ | 61,760 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings, as defined | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes | | $ | 74,867 | | | $ | 96,828 | | | $ | (47,243 | ) | | $ | (24,432 | ) | | $ | (48,096 | ) | | $ | 14,312 | | | $ | (40,795 | ) |
Fixed Charges | | | 32,293 | | | | 27,666 | | | | 22,704 | | | | 42,446 | | | | 55,841 | | | | 40,701 | | | | 61,760 | |
Less: capitalized interest | | | — | | | | (2,330 | ) | | | (6,618 | ) | | | (12,990 | ) | | | (13,153 | ) | | | (10,019 | ) | | | (16,459 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings, as defined | | $ | 107,160 | | | $ | 122,164 | | | $ | (31,157 | ) | | $ | 5,024 | | | $ | (5,408 | ) | | $ | 44,994 | | | $ | 4,506 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges (1) | | | 3.3x | | | | 4.4x | | | | — | | | | — | | | | — | | | | 1.1x | | | | — | |
(1) The ratios were computed by dividing earnings by fixed charges. “Earnings” consist of income from continuing operations before income taxes plus fixed charges less capitalized interest. “Fixed charges” consists of interest expense, capitalized interest expense, preferred stock dividends, and that portion of non-capitalized rental expense deemed to be the equivalent of interest. For the years ended December 31, 2009, 2010 and 2011 and the nine months ended September 30, 2012, earnings were inadequate to cover fixed charges. The coverage deficiency was $53.9 million, $37.4 million and $61.2 million for the years ended December 31, 2009, 2010 and 2011, respectively, and $57.3 million for the nine months ended September 30, 2012.
