Exhibit 12.1
Stone Energy Corporation
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands of dollars)
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands of dollars)
Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||
September 30, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Net income (loss) before income taxes | $ | 119,868 | ($324,691 | ) | ($1,501,231 | ) | $ | 270,420 | ($392,528 | ) | $ | 213,210 | ||||||||||||
Plus fixed charges | 30,861 | 46,961 | 39,643 | 48,268 | 54,131 | 38,051 | ||||||||||||||||||
Less capitalized interest | (21,588 | ) | (25,600 | ) | (26,400 | ) | (16,200 | ) | (18,200 | ) | (14,900 | ) | ||||||||||||
Total earnings | 129,141 | (303,330 | ) | (1,487,988 | ) | 302,488 | (356,597 | ) | 236,361 | |||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expensed (a) | 9,273 | 21,361 | 13,243 | 32,068 | 35,931 | 23,151 | ||||||||||||||||||
Interest capitalized | 21,588 | 25,600 | 26,400 | 16,200 | 18,200 | 14,900 | ||||||||||||||||||
Total fixed charges | 30,861 | 46,961 | 39,643 | 48,268 | 54,131 | 38,051 | ||||||||||||||||||
Ratio of earnings to fixed charges | 4.2x | (b | ) | (c | ) | 6.3x | (d | ) | 6.2x |
(a) | Includes amortization of bond discount. | |
(b) | Due to the March 31, 2009 $340,083 pre-tax ceiling test write-down in accordance with the full cost method of accounting for oil and gas properties, earnings for the year ended December 31, 2009 were insufficient to cover fixed charges in the amount of $350,291. | |
(c) | Due to the December 31, 2008 $1,309,403 pre-tax ceiling test write-down in accordance with the full cost method of accounting for oil and gas properties, earnings for the year ended December 31, 2008 were insufficient to cover fixed charges in the amount of $1,527,631. | |
(d) | Due to the December 31, 2006 $510,013 pre-tax ceiling test write-down in accordance with the full cost method of accounting for oil and gas properties, earnings for the year ended December 31, 2006 were insufficient to cover fixed charges in the amount of $410,728. |