Unit (UNTC) 10-K 2016 FY Annual report

Exhibit 12

Unit Corporation

Computation Ratio of Earnings to Fixed Charges

	2016				2015					2014			2013			2012
	(Dollars in thousands)
Income (loss) from continuing operations before income taxes	$	(206,818	)		$	(1,664,309	)			$	222,939		$	301,469		$	39,402
(Income) loss from equity investments	—				(18		)			133			238			205
Distribution from equity investments	—				—					303			144			—
Interest expense	39,295				31,464					16,904			14,578			13,878
Amortization of capitalized interest	10,695			(3)	38,695			(3	)	5,461		(3)	3,080			4,922		(3	)
Amortization of bond discount	534				499					467			437			259
Earnings (loss)	$	(156,294	)		$	(1,593,669	)			$	246,207		$	319,946		$	58,666
Fixed charges (1)
Interest expense	$	39,295			$	31,464				$	16,904		$	14,578		$	13,878
Capitalized interest	15,293				21,711					32,246			33,670			18,867
Amortization of bond discount	534				499					467			437			259
Total fixed charges	$	55,122			$	53,674				$	49,617		$	48,685		$	33,004
Ratio of earnings to fixed charges (2)	—			(4)	—			(4)		5.0		x	6.6		x	1.8		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 years 2016 and 2015 were insufficient to cover fixed charges by $0.2 million and $1.7 billion, respectively.