Exhibit 12
Whiting Petroleum Corporation
Ratio of Earnings to Fixed Charges
Ratio of Earnings to Fixed Charges and Preferred Dividends
(in thousands)
| Three Months | ||||||||||||||||||||||||
| Ended | Year Ended December 31, | |||||||||||||||||||||||
| March 31, 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expensed | $ | 36,784 | $ | 100,531 | $ | 65,692 | $ | 53,834 | $ | 48,486 | $ | 53,582 | ||||||||||||
Interest capitalized | 706 | 1,515 | 2,749 | 3,574 | 2,920 | 3,406 | ||||||||||||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness | 5,360 | 12,405 | 9,518 | 8,682 | 10,592 | 11,026 | ||||||||||||||||||
Estimate of interest within rental expense | 321 | 1,008 | 1,145 | 883 | 684 | 603 | ||||||||||||||||||
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Total fixed charges | $ | 43,171 | $ | 115,459 | $ | 79,104 | $ | 66,973 | $ | 62,682 | $ | 68,617 | ||||||||||||
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Earnings: | ||||||||||||||||||||||||
Income (loss) before income taxes | $ | 185,412 | $ | 571,871 | $ | 662,011 | $ | 780,319 | $ | 541,443 | $ | (162,835 | ) | |||||||||||
Income from equity investees | (72 | ) | (542 | ) | (588 | ) | (1,032 | ) | (1,311 | ) | (1,581 | ) | ||||||||||||
Fixed charges (above) | 43,171 | 115,459 | 79,104 | 66,973 | 62,682 | 68,617 | ||||||||||||||||||
Amortization of capitalized interest | 543 | 2,020 | 1,745 | 1,409 | 1,117 | 776 | ||||||||||||||||||
Distributed income from equity investees | 393 | 654 | 930 | 1,533 | 1,323 | 1,780 | ||||||||||||||||||
Interest capitalized | (706 | ) | (1,515 | ) | (2,749 | ) | (3,574 | ) | (2,920 | ) | (3,406 | ) | ||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries | 18 | 52 | 90 | 59 | — | — | ||||||||||||||||||
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Total earnings | $ | 228,759 | $ | 687,999 | $ | 740,543 | $ | 845,687 | $ | 602,334 | $ | (96,649 | ) | |||||||||||
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Ratio of earnings to fixed charges (unaudited) (1) | 5.30 | 5.96 | 9.36 | 12.63 | 9.61 | — | ||||||||||||||||||
Fixed charges and preferred stock dividends: | ||||||||||||||||||||||||
Fixed charges (above) | $ | 43,171 | $ | 115,459 | $ | 79,104 | $ | 66,973 | $ | 62,682 | $ | 68,617 | ||||||||||||
Preferred stock dividends (2) | — | 844 | 1,722 | 1,704 | 26,516 | 15,695 | ||||||||||||||||||
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Total fixed charges and preferred stock dividends | $ | 43,171 | $ | 116,303 | $ | 80,826 | $ | 68,677 | $ | 89,198 | $ | 84,312 | ||||||||||||
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Ratio of earnings to fixed charges and preferred stock dividends (unaudited) (3) | 5.30 | 5.92 | 9.16 | 12.31 | 6.75 | — | ||||||||||||||||||
| (1) | For the year ended December 31, 2009, earnings were inadequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.00x (one-to-one coverage) was $165.3 million for the year ended December 31, 2009. |
| (2) | Preferred stock dividends represent pre-tax earnings required to cover any referred stock dividend requirements using our effective tax rate for the relevant period. |
| (3) | For the year ended December 31, 2009, earnings were inadequate to cover fixed charges and perferred stock dividends, and the ratio of earnings to fixed charges and perferred stock dividends therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges and perferred stock dividends to equal 1.00x (one-to-one coverage) was $181.0 million for the year ended December 31, 2009. |
