Exhibit 12.1 | |||||||||||||
PETROLEUM DEVELOPMENT CORPORATION | |||||||||||||
Statement of Computation of Ratio of Earnings to Fixed Charges | |||||||||||||
Year Ended December 31, | |||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | |||||||||
(dollars in thousands) | |||||||||||||
Earnings | |||||||||||||
Income (loss ) from continuing operations before income taxes | $ (126,922) | $ 168,156 | $ 42,590 | $ 379,800 | $ 51,918 | ||||||||
Fixed charges (see below) | 38,710 | 31,583 | 12,796 | 4,187 | 317 | ||||||||
Amortization of capitalized interest | 991 | 744 | 366 | 52 | - | ||||||||
Interest capitalized | (751) | (2,618) | (3,023) | (1,620) | - | ||||||||
Total adjusted earnings (loss) available for fixed charges | $ (87,972) | $ 197,865 | $ 52,729 | $ 382,419 | $ 52,235 | ||||||||
Fixed Charges | |||||||||||||
Interest and debt expense (a) | $ 37,208 | $ 28,132 | $ 9,279 | $ 2,443 | $ 217 | ||||||||
Interest capitalized | 751 | 2,618 | 3,023 | 1,620 | - | ||||||||
Interest component of rental expense (b) | 751 | 833 | 494 | 124 | 100 | ||||||||
Total fixed charges | $ 38,710 | $ 31,583 | $ 12,796 | $ 4,187 | $ 317 | ||||||||
Ratio of Earnings to Fixed Charges | - | (c) | 6.3x | 4.1x | 91.3x | 164.8x | |||||||
(a) | Represents interest expense on long-term debt and amortization of debt discount and issuance costs. |
(b) | Represents the portion of rental expense which we believe represents an interest component. |
(c) | For the year ended December 31, 2009, earnings were insufficient to cover total fixed charges by $126.7 million. |