Exhibit 12.1
Continental Resources, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except ratio)
Year Ended December 31, | ||||||||||||||||||||||||
Pro forma | Historical | |||||||||||||||||||||||
2011 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income before income taxes | 687,445 | 687,445 | 258,467 | 110,008 | 518,530 | 296,777 | ||||||||||||||||||
Plus: Fixed charges | 108,889 | 76,722 | 53,147 | 23,232 | 12,188 | 12,939 | ||||||||||||||||||
Less: Capitalized interest | — | — | — | — | — | — | ||||||||||||||||||
Pro forma adjustments: | ||||||||||||||||||||||||
Plus : Reduction in revolver interest expense | 1,733 | — | — | — | — | — | ||||||||||||||||||
Less: Interest expense on Senior Notes | (32,500 | ) | — | — | — | — | — | |||||||||||||||||
Less: Amortization of Senior Notes costs | (1,400 | ) | — | — | — | — | — | |||||||||||||||||
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Earnings, as defined | 764,167 | 764,167 | 311,614 | 133,240 | 530,718 | 309,716 | ||||||||||||||||||
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Fixed charges | ||||||||||||||||||||||||
Interest expense | 76,722 | 76,722 | 53,147 | 23,232 | 12,188 | 12,939 | ||||||||||||||||||
Capitalized interest | — | — | — | — | — | — | ||||||||||||||||||
Pro forma adjustments: | ||||||||||||||||||||||||
Less: Reduction in revolver interest expense | (1,733 | ) | — | — | — | — | — | |||||||||||||||||
Plus: Interest expense on Senior Notes | 32,500 | — | — | — | — | — | ||||||||||||||||||
Plus: Amortization of Senior Notes costs | 1,400 | — | — | — | — | — | ||||||||||||||||||
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Fixed charges, as defined | 108,889 | 76,722 | 53,147 | 23,232 | 12,188 | 12,939 | ||||||||||||||||||
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Ratio of earnings to fixed charges | 7.0x | (1) | 10.0x | 5.9x | 5.7x | 43.5x | 23.9x | |||||||||||||||||
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(1) | Because the net proceeds of the offering of the Old Notes were used to repay indebtedness and because of the increase in interest related to the Old Notes, our ratio of earnings to fixed charges changed by 10% or more. Earnings for the year ended December 31, 2011 covered fixed charges by $687.4 million. After giving effect to the application of the net proceeds, our pro forma ratio of earnings to fixed charges for the year ended December 31, 2011 would have been 7.0x. |