EXHIBIT 12.1
POGO PRODUCING COMPANY & SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
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| Nine Months |
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| September 30, |
| For the year ended December 31, |
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| 2005 |
| 2004 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
| 2000 |
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EARNINGS: |
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Income from continuing operations before taxes, minority interest, and accounting change |
| $ | 284,661 |
| $ | 325,971 |
| $ | 397,901 |
| $ | 372,606 |
| $ | 116,325 |
| $ | 91,762 |
| $ | 82,717 |
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Add — |
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Fixed charges |
| 43,093 |
| 24,278 |
| 32,118 |
| 48,687 |
| 63,164 |
| 67,316 |
| 44,812 |
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Less — |
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Preferred dividend requirement of consolidated subsidiary |
| — |
| — |
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| (4,140 | ) | (9,999 | ) | (9,965 | ) | |||||||
Capitalized interest |
| (7,435 | ) | (11,457 | ) | (14,216 | ) | (16,531 | ) | (24,033 | ) | (33,242 | ) | (20,918 | ) | |||||||
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Total earnings |
| $ | 320,319 |
| $ | 338,792 |
| $ | 415,803 |
| $ | 404,762 |
| $ | 151,316 |
| $ | 115,837 |
| $ | 96,646 |
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FIXED CHARGES: |
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Interest expense |
| $ | 40,892 |
| $ | 22,115 |
| $ | 29,333 |
| $ | 46,360 |
| $ | 57,450 |
| $ | 56,259 |
| $ | 34,064 |
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Preferred dividend requirement of consolidated subsidiary |
| — |
| — |
| — |
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| 4,140 |
| 9,999 |
| 9,965 |
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Portion of rental expense representing interest |
| 2,201 |
| 2,163 |
| 2,785 |
| 2,327 |
| 1,574 |
| 1,058 |
| 783 |
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Total fixed charges |
| $ | 43,093 |
| $ | 24,278 |
| $ | 32,118 |
| $ | 48,687 |
| $ | 63,164 |
| $ | 67,316 |
| $ | 44,812 |
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RATIO OF EARNINGS TO FIXED CHARGES |
| 7.4 | x | 14.0 | x | 12.9 | x | 8.3 | x | 2.4 | x | 1.7 | x | 2.2 | x | |||||||
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Rent expense |
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Office space |
| $ | 2,365 |
| $ | 2,365 |
| $ | 2,859 |
| $ | 2,739 |
| $ | 2,700 |
| $ | 2,520 |
| $ | 1,850 |
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Other equipment |
| 4,239 |
| 4,123 |
| 5,497 |
| 4,241 |
| 2,022 |
| 654 |
| 500 |
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Total rent expense |
| $ | 6,604 |
| $ | 6,488 |
| $ | 8,356 |
| $ | 6,980 |
| $ | 4,722 |
| $ | 3,174 |
| $ | 2,350 |
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Percent assumed to be interest |
| 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | |||||||
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| $ | 2,201 |
| $ | 2,163 |
| $ | 2,785 |
| $ | 2,327 |
| $ | 1,574 |
| $ | 1,058 |
| $ | 783 |
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