| EXHIBIT 12 | ||
CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS
| Years Ended December 31, | ||||||||||||||||||||
| 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||
| EARNINGS: | ||||||||||||||||||||
| Income (loss) before income taxes and cumulative effect of accounting change | $ | 1,442 | $ | 3,200 | $ | (19,098 | ) | $ | (4,589 | ) | $ | 954 | ||||||||
Interest expense(a) | 207 | 172 | 322 | 275 | 421 | |||||||||||||||
| Loss on investment in equity investees in excess of distributed earnings | 219 | 75 | 96 | 8 | — | |||||||||||||||
| Amortization of capitalized interest | 440 | 438 | 483 | 729 | 487 | |||||||||||||||
| Loan cost amortization | 37 | 32 | 31 | 24 | 25 | |||||||||||||||
| Less: (Income) loss attributable to noncontrolling interests | 68 | 9 | (4 | ) | ||||||||||||||||
| Earnings (losses) | $ | 2,345 | $ | 3,917 | $ | (18,098 | ) | $ | (3,544 | ) | $ | 1,883 | ||||||||
| FIXED CHARGES: | ||||||||||||||||||||
| Interest Expense | $ | 207 | $ | 172 | $ | 322 | $ | 275 | $ | 421 | ||||||||||
| Capitalized interest | 815 | 604 | 410 | 242 | 193 | |||||||||||||||
| Loan cost amortization | 37 | 32 | 31 | 24 | 25 | |||||||||||||||
| Fixed Charges | $ | 1,059 | $ | 808 | $ | 763 | $ | 541 | $ | 639 | ||||||||||
| PREFERRED STOCK DIVIDENDS: | ||||||||||||||||||||
| Preferred dividend requirements | $ | 171 | $ | 171 | $ | 171 | $ | 97 | $ | 84 | ||||||||||
Ratio of income (loss) before provision for taxes to net income (loss)(b) | 1.61 | 1.56 | 1.30 | 1.04 | 1.00 | |||||||||||||||
| Preferred Dividends | $ | 275 | $ | 266 | $ | 222 | $ | 101 | $ | 84 | ||||||||||
| COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS | $ | 1,334 | $ | 1,074 | $ | 985 | $ | 642 | $ | 723 | ||||||||||
| RATIO OF EARNINGS TO FIXED CHARGES | 2.2 | 4.8 | (23.7 | ) | (6.6 | ) | 2.9 | |||||||||||||
| INSUFFICIENT COVERAGE | $ | — | $ | — | $ | 18,861 | $ | 4,085 | $ | — | ||||||||||
| RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS | 1.8 | 3.6 | (18.4 | ) | (5.5 | ) | 2.6 | |||||||||||||
| INSUFFICIENT COVERAGE | $ | — | $ | — | $ | 19,083 | $ | 4,186 | $ | — | ||||||||||
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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. |