Exhibit 12
| DENBURY RESOURCES INC. | ||||||||||||||||||||
| COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| In thousands | 2013(2) | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax income from continuing operations | 642,380 | 856,857 | 924,045 | 479,070 | (122,189 | ) | ||||||||||||||
Plus: Equity in earnings of affiliates | — | — | — | (587 | ) | (6,657 | ) | |||||||||||||
Plus: Distributed income of equity investees | — | — | — | — | 11,642 | |||||||||||||||
Plus: Amortization of capitalized interest | 7,588 | 6,567 | 5,271 | 4,865 | 2,427 | |||||||||||||||
Plus: Fixed charges (below) | 224,110 | 234,850 | 236,552 | 250,964 | 122,795 | |||||||||||||||
Less: Interest capitalized | (79,253 | ) | (77,432 | ) | (61,586 | ) | (66,815 | ) | (68,596 | ) | ||||||||||
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Earnings | 794,825 | 1,020,842 | 1,104,282 | 667,497 | (60,578 | ) | ||||||||||||||
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Fixed Charges: | ||||||||||||||||||||
Interest expense | 140,709 | 153,581 | 164,360 | 176,113 | 47,430 | |||||||||||||||
Capitalized interest | 79,253 | 77,432 | 61,586 | 66,815 | 68,596 | |||||||||||||||
Interest component of rent expense(1) | 4,148 | 3,837 | 10,606 | 8,036 | 6,769 | |||||||||||||||
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Fixed charges | 224,110 | 234,850 | 236,552 | 250,964 | 122,795 | |||||||||||||||
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Ratio of earnings to fixed charges | 3.5 | 4.3 | 4.7 | 2.7 | (0.5 | )(3) | ||||||||||||||
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| (1) | Represents that portion of rental expense that we believe to be representative of interest expense. |
| (2) | On an as-adjusted basis giving effect to this offering, our pro forma ratio of earnings to fixed charges for the year ended December 31, 2013 was approximately 4.0x, assuming that, pursuant to the Tender Offer, all $996.3 million outstanding principal amount of 2020 Notes will be repurchased in full by Denbury on the early payment date, and that approximately $11.8 million of cash on hand will be used to pay costs associated with the full repurchase. Our pro forma ratio of earnings to fixed charges may vary based on a number of factors, including the interest rate of the notes offered hereby. |
| (3) | Earnings were inadequate to cover fixed charges by $183.4 million. |
