Unit (UNTC) 10-K 2015 FY Annual report

Exhibit 12

Unit Corporation

Computation Ratio of Earnings to Fixed Charges

	2015				2014				2013			2012				2011
	(Dollars in thousands)
Income (loss) from continuing operations before income taxes	$	(1,664,309	)		$	222,939			$	301,469		$	39,402			$	319,002
(Income) loss from equity investments	(18		)		133				238			205				295
Distribution from equity investments	—				303				144			—				—
Interest expense	31,464				16,904				14,578			13,878				4,167
Amortization of capitalized interest	38,695			(3)	5,461		(3	)	3,080			4,922		(3	)	1,654
Amortization of bond discount	499				467				437			259				—
Earnings (loss)	$	(1,593,669	)		$	246,207			$	319,946		$	58,666			$	325,118
Fixed charges (1)
Interest expense	$	31,464			$	16,904			$	14,578		$	13,878			$	4,167
Capitalized interest	21,711				32,246				33,670			18,867				11,478
Amortization of bond discount	499				467				437			259				—
Total fixed charges	$	53,674			$	49,617			$	48,685		$	33,004			$	15,645
Ratio of earnings to fixed charges (2)	—			(4)	5.0		x		6.6		x	1.8		x		20.8		x

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(1) Fixed charges are determined as defined in instructions for Item 503 of Regulation S-K of the Securities Act.

(2) There were no shares of preferred stock outstanding during any of the time periods indicated in the table.

(3) Amortization of capitalized interest includes the proportionate amount related to the ceiling test write-down.

(4) Earnings for the year ended December 31, 2015 were insufficient to cover fixed charges by $1.6 billion.