Exhibit 12.1
POGO PRODUCING COMPANY & SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)
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| Three Months |
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| March 31, |
| For the year ended December 31, |
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| 2006 |
| 2005 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
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EARNINGS: |
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Income from continuing operations before taxes, minority interest, and accounting change |
| $ | 101,734 |
| $ | 66,512 |
| $ | 457,953 |
| $ | 397,901 |
| $ | 372,606 |
| $ | 116,325 |
| $ | 91,762 |
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Add — |
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Fixed charges |
| 30,215 |
| 11,029 |
| 72,016 |
| 32,118 |
| 48,687 |
| 63,164 |
| 67,316 |
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Less — |
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Preferred dividend requirement of consolidated subsidiary |
| — |
| — |
| — |
| — |
| — |
| (4,140 | ) | (9,999 | ) | |||||||
Capitalized interest |
| (16,178 | ) | (2,197 | ) | (23,480 | ) | (14,216 | ) | (16,531 | ) | (24,033 | ) | (33,242 | ) | |||||||
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Total earnings |
| $ | 115,771 |
| $ | 75,344 |
| $ | 506,489 |
| $ | 415,803 |
| $ | 404,762 |
| $ | 151,316 |
| $ | 115,837 |
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FIXED CHARGES: |
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Interest expense |
| $ | 28,324 |
| $ | 10,211 |
| $ | 68,654 |
| $ | 29,333 |
| $ | 46,360 |
| $ | 57,450 |
| $ | 56,259 |
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Preferred dividend requirement of consolidated subsidiary |
| — |
| — |
| — |
| — |
| — |
| 4,140 |
| 9,999 |
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Portion of rental expense representing interest |
| 1,891 |
| 818 |
| 3,362 |
| 2,785 |
| 2,327 |
| 1,574 |
| 1,058 |
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Total fixed charges |
| $ | 30,215 |
| $ | 11,029 |
| $ | 72,016 |
| $ | 32,118 |
| $ | 48,687 |
| $ | 63,164 |
| $ | 67,316 |
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RATIO OF EARNINGS TO FIXED CHARGES |
| 3.8 | x | 6.8 | x | 7.0 | x | 12.9 | x | 8.3 | x | 2.4 | x | 1.7 | x | |||||||
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Rent expense |
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Office space |
| $ | 1,304 |
| $ | 716 |
| $ | 3,305 |
| $ | 2,859 |
| $ | 2,739 |
| $ | 2,700 |
| $ | 2,520 |
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Other equipment |
| 4,369 |
| 1,739 |
| 6,782 |
| 5,497 |
| 4,241 |
| 2,022 |
| 654 |
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FPSO |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
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FSO |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
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Total rent expense |
| $ | 5,673 |
| $ | 2,455 |
| $ | 10,087 |
| $ | 8,356 |
| $ | 6,980 |
| $ | 4,722 |
| $ | 3,174 |
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Percent assumed to be interest |
| 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | 33 | % | |||||||
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| $ | 1,891 |
| $ | 818 |
| $ | 3,362 |
| $ | 2,785 |
| $ | 2,327 |
| $ | 1,574 |
| $ | 1,058 |
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