Exhibit 12.1
PDC Energy, Inc.
Ratio of Earnings to Fixed Charges
(in 000’s)
Year ended December, 31 | Three Months Ended | |||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 139,550 | $ | (97,036 | ) | $ | 26,083 | $ | 34,364 | (34,396 | ) | $ | (63,447 | ) | ||||||||||
Fixed charges | 31,629 | 39,403 | 35,197 | 40,670 | 51,542 | 14,135 | ||||||||||||||||||
Amortization of capitalized interest | 744 | 991 | 788 | 676 | 906 | 256 | ||||||||||||||||||
Interest Capitalized | (2,618 | ) | (751 | ) | (301 | ) | (1,703 | ) | (1,238 | ) | (222 | ) | ||||||||||||
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Total adjusted earnings (loss) available for fixed charges | $ | 169,305 | $ | (57,393 | ) | $ | 61,767 | $ | 74,007 | 16,814 | $ | (49,278 | ) | |||||||||||
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Fixed Charges | ||||||||||||||||||||||||
Interest and debt expense(a) | $ | 28,132 | $ | 37,208 | $ | 33,250 | $ | 36,985 | 48,287 | $ | 13,357 | |||||||||||||
Interest capitalized | 2,618 | 751 | 301 | 1,703 | 1,238 | 222 | ||||||||||||||||||
Interest component of rental expense(b) | 879 | 1,444 | 1,646 | 1,982 | 2,017 | 556 | ||||||||||||||||||
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Total fixed charges | $ | 31,629 | $ | 39,403 | $ | 35,197 | $ | 40,670 | 51,542 | $ | 14,135 | |||||||||||||
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Ratio of Earnings to Fixed Charges | 5.4 | x | — | (c) | 1.8 | x | 1.8 | x | 0.3 | x(c) | — | (c) | ||||||||||||
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(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 three months ended March 31, 2013, the year ended December 31, 2012 and the year ended December 31, 2009, earnings were insufficient to cover total fixed charges by $63.4 million, $34.7 million and $96.8 million, respectively. |