Continental Resources, Inc. | Exhibit 12.1 |
Ratio of Earnings to Fixed Charges
(in thousands, except ratio)
Year Ended December 31, | Six Months Ended June 30, | ||||||||||||||||||
Pro forma | Historical | Pro forma | Historical | ||||||||||||||||
2009 | 2009 | 2008 | 2007 | 2006 | 2005 | 2010 | 2010 | ||||||||||||
Earnings | |||||||||||||||||||
Income before income taxes | 110,008 | 110,008 | 518,530 | 296,777 | 252,956 | 195,446 | 281,373 | 281,373 | |||||||||||
Plus: Fixed charges | 72,945 | 23,232 | 12,188 | 12,939 | 11,310 | 14,220 | 36,892 | 20,484 | |||||||||||
Less: Capitalized interest | — | — | — | — | — | — | (221 | ) | (221 | ) | |||||||||
Pro forma adjustments: | |||||||||||||||||||
Plus: Reduction in revolver interest expense | 13,634 | — | — | — | — | — | 2,059 | — | |||||||||||
Less: Interest expense on Senior Notes | (61,528 | ) | — | — | — | — | — | (17,967 | ) | — | |||||||||
Less: Amortization of Senior Notes costs | (1,819 | ) | — | — | — | — | — | (500 | ) | — | |||||||||
Earnings, as defined | 133,240 | 133,240 | 530,718 | 309,716 | 264,266 | 209,666 | 301,636 | 301,636 | |||||||||||
Fixed charges | |||||||||||||||||||
Interest expense | 23,232 | 23,232 | 12,188 | 12,939 | 11,310 | 14,220 | 20,263 | 20,263 | |||||||||||
Capitalized interest | — | — | — | — | — | — | 221 | 221 | |||||||||||
Pro forma adjustments: | |||||||||||||||||||
Less: Reduction in revolver interest expense | (13,634 | ) | — | — | — | — | — | (2,059 | ) | — | |||||||||
Plus: Interest expense on Senior Notes | 61,528 | — | — | — | — | — | 17,967 | — | |||||||||||
Plus: Amortization of Senior Notes costs | 1,819 | — | — | — | — | — | 500 | — | |||||||||||
Fixed charges, as defined | 72,945 | 23,232 | 12,188 | 12,939 | 11,310 | 14,220 | 36,892 | 20,484 | |||||||||||
Ratio of earnings to fixed charges | 1.8x | (1) | 5.7x | 43.5x | 23.9x | 23.4x | 14.7x | 8.2x | (1) | 14.7x | |||||||||
(1) | Adjusted to give effect to a pro forma increase in interest expense resulting from the issuance of the notes on April 5, 2010, the September 2009 issuance of our 8 1/4% Senior Notes due 2019, and the September 2010 issuance of our 7 1/8% Senior Notes due 2021 and the utilization of the net proceeds from the sale of those notes to repay indebtedness that was outstanding under our revolving credit facility during the six months ended June 30, 2010 and year ended December 31, 2009, as applicable, as if the issuance of those notes had occurred on January 1, 2010 and January 1, 2009, respectively. |