Exhibit 12.1
PETROLEUM DEVELOPMENT CORPORATION
Statement of Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31, | Three Months Ended March 31, 2008 | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income (loss) before income taxes | $ | 54,190 | $ | 387,409 | $ | 66,128 | $ | 53,478 | $ | 34,618 | $ | (22,130 | ) | |||||||||||
Fixed charges (see below) | 12,796 | 4,187 | 317 | 338 | 1,008 | 5,737 | ||||||||||||||||||
Amortization of capitalized interest | 366 | 52 | — | — | — | 146 | ||||||||||||||||||
Interest capitalized | (3,023 | ) | (1,620 | ) | — | — | — | (613 | ) | |||||||||||||||
Total adjusted earnings (loss) available for fixed charges | $ | 64,329 | $ | 390,028 | $ | 66,445 | $ | 53,816 | $ | 35,626 | $ | (16,860 | ) | |||||||||||
Fixed Charges | ||||||||||||||||||||||||
Interest and debt expense(a) | $ | 9,279 | $ | 2,443 | $ | 217 | $ | 238 | $ | 816 | $ | 4,932 | ||||||||||||
Interest capitalized | 3,023 | 1,620 | — | — | — | 613 | ||||||||||||||||||
Interest component of rental expense(b) | 494 | 124 | 100 | 100 | 192 | 192 | ||||||||||||||||||
Total fixed charges | $ | 12,796 | $ | 4,187 | $ | 317 | $ | 338 | $ | 1,008 | $ | 5,737 | ||||||||||||
Ratio of Earnings to Fixed Charges | 5.0 | x | 93.2 | x | 209.6 | x | 159.2 | x | 35.4 | x | — | (c) | ||||||||||||
(a) | Represents interest expense on long-term debt and amortization of debt issuance costs. |
(b) | Represents the portion of rental expense which we believe represents an interest component. |
(c) | Earnings for the period were insufficient to cover fixed charges by $22.1 million. |