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)
Three Months Ended | ||||||||||||||||||||||||||||
March 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||||||
Net income (loss) | $ | 10,476 | $ | 24,008 | ($254,222 | ) | $ | 136,764 | $ | 119,668 | $ | 121,093 | $ | 45,803 | ||||||||||||||
Income tax provision | 5,757 | 13,017 | (138,306 | ) | 76,446 | 64,436 | 65,203 | 24,662 | ||||||||||||||||||||
16,233 | 37,025 | (392,528 | ) | 213,210 | 184,104 | 186,296 | 70,465 | |||||||||||||||||||||
Fixed charges included in earnings: | ||||||||||||||||||||||||||||
Interest expense | 11,191 | 5,915 | 35,931 | 23,151 | 16,835 | 19,860 | 23,141 | |||||||||||||||||||||
Amortization of debt-related expenses | 260 | 163 | 812 | 646 | 664 | 706 | 692 | |||||||||||||||||||||
Total Earnings | 27,684 | 43,103 | (355,785 | ) | 237,007 | 201,603 | 206,862 | 94,298 | ||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Fixed charges included in earnings | 11,451 | 6,078 | 36,743 | 23,797 | 17,499 | 20,566 | 23,833 | |||||||||||||||||||||
Capitalized interest | 4,332 | 4,289 | 18,221 | 14,877 | 6,957 | 7,848 | 8,519 | |||||||||||||||||||||
Total fixed charges | 15,783 | 10,367 | 54,964 | 38,674 | 24,456 | 28,414 | 32,352 | |||||||||||||||||||||
Ratio of earnings to fixed charges | 1.8x | 4.2x | (A | ) | 6.1x | 8.2x | 7.3x | 2.9x | ||||||||||||||||||||
(A) | As a result of low oil and gas prices as of December 31, 2006, we recorded a $510,013 pre-tax ceiling test write-down in accordance with the full cost method of accounting for oil and gas properties. The write-down resulted in an earnings to fixed charges deficiency in the amount of $410,749 for the year ended December 31, 2006. |