Unit (UNTC) 10-K 2017 FY Annual report

Exhibit 12

Unit Corporation

Computation Ratio of Earnings to Fixed Charges

	2017			2016					2015				2014				2013
	(Dollars in thousands)
Income (loss) from continuing operations before income taxes	$	60,170		$	(206,818	)			$	(1,664,309	)		$	222,939			$	301,469
(Income) loss from equity investments	—			—					(18		)		133				238
Distribution from equity investments	—			—					—				303				144
Interest expense	37,763			39,295					31,464				16,904				14,578
Amortization of capitalized interest	4,673			10,695			(3	)	38,695			(3)	5,461		(3	)	3,080
Amortization of bond discount	571			534					499				467				437
Earnings (loss)	$	103,177		$	(156,294	)			$	(1,593,669	)		$	246,207			$	319,946
Fixed charges (1)
Interest expense	$	37,763		$	39,295				$	31,464			$	16,904			$	14,578
Capitalized interest	15,948			15,293					21,711				32,246				33,670
Amortization of bond discount	571			534					499				467				437
Total fixed charges	$	54,282		$	55,122				$	53,674			$	49,617			$	48,685
Ratio of earnings to fixed charges (2)	1.9		x	—			(4)		—			(4)	5.0		x		6.6		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.