COMSTOCK RESOURCES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS TO FIXED CHARGES RATIO
Nine Months Ended
September 30,
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1998 1999 2000 2001 2002 2002 2003
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Ratio of Earnings to Fixed Charges: (in thousands, except ratios)
Fixed charges:
Interest expense $ 16,977 $ 23,361 $24,611 $20,737 $30,002 $23,307 $22,648
Capitalized interest expense 2,273 -- -- 230 281 199 296
Preferred stock dividends -- 1,853 2,471 1,604 1,604 1,199 573
Rental expense deemed interest -- -- -- -- -- -- --
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Total fixed charges $ 19,250 $ 25,214 $27,082 $22,571 $31,887 $24,705 $23,517
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Earnings, as defined:
Income (loss) from continuing operations
before income taxes (27,062) (5,052) 63,034 53,085 19,350 4,119 73,254
Interest expense 16,977 23,361 24,611 20,737 30,002 23,307 22,648
Rental expense deemed interest -- -- -- -- -- -- --
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Earnings, as defined (1) $(10,085) $ 18,309 $87,645 $73,822 $49,352 $27,426 $95,902
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Ratio of earnings to fixed charges (2) -- -- 3.2x 3.3x 1.5x 1.1x 4.1x
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(1) Earnings represents income before income taxes from continuing
operations before fixed charges.
(2) For the purpose of calculating the ratio of earnings to fixed charges,
fixed charges include interest expense, capitalized interest expense,
preferred stock dividends and that portion of non-capitalized rental
expense deemed to be the equivalent of interest. Earnings represents
income before income taxes from continuing operations before fixed
charges. Earnings were insufficient to cover fixed charges by $29.3
million and $6.9 million for the years ended December 31, 1998 and
1999, respectively.
