Exhibit 12
DENBURY RESOURCES INC. | ||||||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||||||||||||||||
Year Ended December 31, | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||
In thousands | 2007 | 2008 | 2009 | 2010 | 2011 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pretax income from continuing operations | 393,414 | 624,228 | (122,189 | ) | 479,070 | 924,045 | 661,492 | |||||||||||||||||
Plus: Equity in (earnings) loss of affiliates | 1,110 | (5,354 | ) | (6,657 | ) | (587 | ) | — | — | |||||||||||||||
Plus: Distributed income of equity investees | 1,427 | 7,139 | 11,642 | — | — | — | ||||||||||||||||||
Plus: Amortization of capitalized interest | 169 | 1,420 | 2,427 | 4,865 | 5,271 | 4,780 | ||||||||||||||||||
Plus: Fixed charges (below) | 55,917 | 67,576 | 122,795 | 250,964 | 236,552 | 177,748 | ||||||||||||||||||
Less: Interest capitalized | (20,385 | ) | (29,161 | ) | (68,596 | ) | (66,815 | ) | (61,586 | ) | (57,357 | ) | ||||||||||||
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Earnings | 431,652 | 665,848 | (60,578 | ) | 667,497 | 1,104,282 | 786,663 | |||||||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest expense | 30,830 | 32,596 | 47,430 | 176,113 | 164,360 | 115,745 | ||||||||||||||||||
Capitalized interest | 20,385 | 29,161 | 68,596 | 66,815 | 61,586 | 57,357 | ||||||||||||||||||
Interest component of rent expense(1) | 4,702 | 5,819 | 6,769 | 8,036 | 10,606 | 4,646 | ||||||||||||||||||
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Fixed charges | 55,917 | 67,576 | 122,795 | 250,964 | 236,552 | 177,748 | ||||||||||||||||||
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Ratio of earnings to fixed charges | 7.7 | 9.9 | (0.5 | )(2) | 2.7 | 4.7 | 4.4 | |||||||||||||||||
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(1) | Represents that portion of rental expense that we believe to be representative of interest expense. |
(2) | Earnings were inadequate to cover fixed charges by $183.4 million. |