Exhibit 12
CHESAPEAKE ENERGY CORPORATION
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(dollars in 000's)
Year Dec. 31, | Year Ended Dec. 31, 1999 | Year Ended Dec. 31, 2000 | Year Ended Dec. 31, 2001 | Year Ended Dec. 31, 2002 | ||||||||||||
EARNINGS | ||||||||||||||||
Income before income taxes and extraordinary item | $ | (920,520 | ) | $ | 35,030 | $ | 196,162 | $ | 361,698 | $ | 67,140 | |||||
Interest | 68,249 | 81,052 | 86,256 | 98,321 | 111,280 | |||||||||||
Amortization of capitalized interest | 12,240 | 1,047 | 1,226 | 1,784 | 1,804 | |||||||||||
Bond discount amortization | — | — | — | — | — | |||||||||||
Loan cost amortization | 2,516 | 3,338 | 3,669 | 4,022 | 4,962 | |||||||||||
Earnings | $ | (837,515 | ) | $ | 120,467 | $ | 287,313 | $ | 465,825 | $ | 185,186 | |||||
Interest expense | $ | 68,249 | $ | 81,052 | $ | 86,256 | $ | 98,321 | $ | 111,280 | ||||||
Capitalized interest | 6,470 | 3,356 | 2,452 | 4,719 | 4,976 | |||||||||||
Bond discount amortization | — | — | — | — | — | |||||||||||
Loan cost amortization | 2,516 | 3,338 | 3,669 | 4,022 | 4,962 | |||||||||||
Fixed Charges | $ | 77,235 | $ | 87,746 | $ | 92,377 | $ | 107,062 | $ | 121,218 | ||||||
Preferred Stock Dividends | ||||||||||||||||
Preferred Dividend Requirements | $ | 12,077 | $ | 16,711 | $ | 8,484 | $ | 2,050 | $ | 10,117 | ||||||
Ratio of income before provision for taxes to Net Income | N/A | 1.05 | N/A | 1.66 | 1.67 | |||||||||||
Subtotal—Preferred Dividends | $ | 12,077 | $ | 17,597 | $ | 8,484 | $ | 3,411 | $ | 16,861 | ||||||
Combined Fixed Charges and Preferred Dividends | $ | 89,312 | $ | 105,343 | $ | 100,861 | $ | 110,473 | $ | 138,079 | ||||||
Ratio of Earnings to Fixed Charges | — | 1.4 | 3.1 | 4.4 | 1.5 | |||||||||||
Insufficient coverage | $ | 914,750 | $ | — | $ | — | $ | — | $ | — | ||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | — | 1.1 | 2.8 | 4.2 | 1.3 | |||||||||||
Insufficient coverage | $ | 926,827 | $ | — | $ | — | $ | — | $ | — | ||||||