EXHIBIT 12
COMPUTATION RATIO OF EARNINGS TO FIXED CHARGES
Unit Corporation
Ratio of Earnings to Fixed Charges
The table below sets forth the ratios of earnings to fixed charges of the Company and its consolidated subsidiaries for the periods indicated. The ratios have been computed using the amounts for the Company and, its consolidated subsidiaries. Earnings available for fixed charges represent earnings from continuing operations before income taxes and fixed charges less income from investments accounted for by the equity method. Fixed charges represent interest incurred and guaranteed plus that portion of rental expense deemed to be the equivalent of interest.
| Nine months ended September 30, 2015 | Fiscal years ended December 31, | |||||||||||||||||||||||
| (dollars in thousands) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,166,960 | ) | $ | 222,939 | $ | 301,469 | $ | 39,402 | $ | 319,002 | $ | 237,221 | |||||||||||
(Income) loss from equity investments | (18 | ) | 133 | 238 | 205 | 295 | (69 | ) | ||||||||||||||||
Distribution from equity investments | — | 303 | 144 | — | — | 682 | ||||||||||||||||||
Interest expense | 23,111 | 16,904 | 14,578 | 13,878 | 4,167 | — | ||||||||||||||||||
Amortization of capitalized interest | (3) | 22,661 | (3) | 5,454 | 3,080 | (3) | 4,922 | 1,654 | 1,145 | |||||||||||||||
Amortization of bond discount | 371 | 467 | 437 | 259 | — | — | ||||||||||||||||||
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Earnings | $ | (1,120,835 | ) | $ | 246,200 | $ | 319,946 | $ | 58,666 | $ | 325,118 | $ | 238,979 | |||||||||||
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Fixed charges(1): | ||||||||||||||||||||||||
Interest expense | $ | 23,111 | $ | 16,904 | $ | 14,578 | $ | 13,878 | $ | 4,167 | $ | — | ||||||||||||
Capitalized interest | 16,573 | 32,246 | 33,670 | 18,867 | 11,478 | 4,526 | ||||||||||||||||||
Amortization of bond discount | 371 | 467 | 437 | 259 | — | — | ||||||||||||||||||
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Total fixed charges | $ | 40,055 | $ | 49,617 | $ | 48,685 | $ | 33,004 | $ | 15,645 | $ | 4,526 | ||||||||||||
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Ratio of earnings to fixed charges(2) | (4) | — | 5.0x | 6.6x | 1.8x | 20.8x | 52.8x | |||||||||||||||||
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| (1) | Fixed charges are determined as defined in instructions for Item 503 of Regulation S-K of the Securities Act |
| (2) | There were no shares of preferred stock outstanding during any of the time periods indicated in the table. |
| (3) | Amortization of capitalized interest includes the proportionate amount related to the ceiling test write-down. |
| (4) | Earnings for the nine months ended September 30, 2015 were insufficient to cover fixed charges by $1.2 billion. |
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