Expand Energy (EXE) 10-Q 2017 Q1 Quarterly report

10-Q EXHIBIT 12

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES

RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES

AND PREFERRED DIVIDENDS

	Years Ended December 31,													Three Months Ended March 31,
	2012			2013		2014		2015			2016			2017
EARNINGS (LOSS):
Income (loss) before income taxes and cumulative effect of accounting change	$	(974	)	$	1,442	$	3,200	$	(19,098	)	$	(4,589	)	$	141
Interest expense(a)	142			207		172		322			275			94
(Gain)/loss on investment in equity investees in excess of distributed earnings	108			219		75		96			8			—
Amortization of capitalized interest	402			440		438		483			729			126
Loan cost amortization	43			37		32		31			24			7
Earnings (Loss)	$	(279	)	$	2,345	$	3,917	$	(18,166	)	$	(3,553	)	$	368
FIXED CHARGES:
Interest Expense	$	142		$	207	$	172	$	322		$	275		$	94
Capitalized interest	976			815		604		410			242			51
Loan cost amortization	43			37		32		31			24			7
Fixed Charges	$	1,161		$	1,059	$	808	$	763		$	541		$	152
PREFERRED STOCK DIVIDENDS:
Preferred dividend requirements	$	171		$	171	$	171	$	171		$	97		$	23
Ratio of income (loss) before provision for taxes to net income (loss)(b)	1.64			1.61		1.56		1.30			1.04			1.01
Preferred Dividends	$	280		$	275	$	266	$	222		$	101		$	23
COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS	$	1,441		$	1,334	$	1,074	$	985		$	642		$	175
RATIO OF EARNINGS TO FIXED CHARGES	(0.2		)	2.2		4.8		(23.8		)	(6.6		)	2.4
INSUFFICIENT COVERAGE	$	1,440		$	—	$	—	$	18,929		$	4,094		$	—
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS	(0.2		)	1.8		3.6		(18.4		)	(5.5		)	2.1
INSUFFICIENT COVERAGE	$	1,720		$	—	$	—	$	19,151		$	4,195		$	—

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(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.