EXHIBIT 12
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Years Ended December 31, | | Six Months
Ended
June 30, |
| | | 2011 | | 2012 | | 2013 | | 2014 | | 2015 | | 2016 |
| | | | | | |
| EARNINGS: | | | | | | | | | | | | |
| Income (loss) before income taxes and cumulative effect of accounting change | | $ | 2,880 |
| | $ | (974 | ) | | $ | 1,442 |
| | $ | 3,200 |
| | $ | (19,098 | ) | | $ | (2,671 | ) |
Interest expense(a) | | 94 |
| | 142 |
| | 207 |
| | 172 |
| | 322 |
| | 120 |
|
| (Gain)/loss on investment in equity investees in excess of distributed earnings | | (154 | ) | | 108 |
| | 219 |
| | 75 |
| | 96 |
| | 2 |
|
| Amortization of capitalized interest | | 297 |
| | 402 |
| | 440 |
| | 438 |
| | 483 |
| | 387 |
|
| Loan cost amortization | | 28 |
| | 43 |
| | 37 |
| | 32 |
| | 31 |
| | 12 |
|
| Earnings | | $ | 3,145 |
| | $ | (279 | ) | | $ | 2,345 |
| | $ | 3,917 |
| | $ | (18,166 | ) | | $ | (2,150 | ) |
| FIXED CHARGES: | | | | | | | | | | | | |
| Interest Expense | | $ | 94 |
| | $ | 142 |
| | $ | 207 |
| | $ | 172 |
| | $ | 322 |
| | $ | 120 |
|
| Capitalized interest | | 727 |
| | 976 |
| | 815 |
| | 604 |
| | 410 |
| | 127 |
|
| Loan cost amortization | | 28 |
| | 43 |
| | 37 |
| | 32 |
| | 31 |
| | 12 |
|
| Fixed Charges | | $ | 849 |
| | $ | 1,161 |
| | $ | 1,059 |
| | $ | 808 |
| | $ | 763 |
| | $ | 259 |
|
| PREFERRED STOCK DIVIDENDS: | | | | | | | | | | | | |
| Preferred dividend requirements | | $ | 172 |
| | $ | 171 |
| | $ | 171 |
| | $ | 171 |
| | $ | 171 |
| | $ | 85 |
|
Ratio of income (loss) before provision for taxes to net income (loss)(b) | | 1.65 |
| | 1.64 |
| | 1.61 |
| | 1.56 |
| | 1.30 |
| | 1.00 |
|
| Preferred Dividends | | $ | 284 |
| | $ | 280 |
| | $ | 275 |
| | $ | 266 |
| | $ | 222 |
| | $ | 85 |
|
| COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS | | $ | 1,131 |
| | $ | 1,441 |
| | $ | 1,334 |
| | $ | 1,074 |
| | $ | 985 |
| | $ | 344 |
|
| RATIO OF EARNINGS TO FIXED CHARGES | | 3.7 |
| | (0.2 | ) | | 2.2 |
| | 4.8 |
| | (23.8 | ) | | (8.3 | ) |
| INSUFFICIENT COVERAGE | | $ | — |
| | $ | 1,440 |
| | $ | — |
| | $ | — |
| | $ | 18,929 |
| | $ | 2,409 |
|
| RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS | | 2.8 |
| | (0.2 | ) | | 1.8 |
| | 3.6 |
| | (18.4 | ) | | (6.3 | ) |
| INSUFFICIENT COVERAGE | | $ | — |
| | $ | 1,720 |
| | $ | — |
| | $ | — |
| | $ | 19,151 |
| | $ | 2,494 |
|
| |
| (a) | Excludes the effect of unrealized gains or losses on interest rate derivatives and includes amortization of bond discount. |
| |
| (b) | Amounts of income (loss) before provision for taxes and of net income (loss) exclude the cumulative effect of accounting change. |
