RATIO OF EARNINGS TO FIXED CHARGES
The table sets forth the ratio of earnings to fixed charges
of the
Company and its consolidated subsidiaries of the periods
indicated.
Year Ended
December 31,
- -----------------------------------------------------
1996 1995 1994 1993
1992
---- ---- ---- ----
----
Ratio of earnings
to fixed charges 2.3x 1.9x 3.6x 4.0x
3.1x
In the calculation of the ratio of earnings to fixed
charges, "earnings"
consists of income before income taxes, adjusted to add back
fixed charges
(excluding capitalized interest relating to oil and gas
properties), the
amortization of interest previously capitalized on oil and gas
properties, and
the Company's 47.93% ownership share of the fixed charges of
NOARK. "Fixed
charges" consists of interest on borrowings (including
capitalized interest),
amortization of debt discount and expense, a portion of rental
expense
determined to be representative of the interest factor, and the
Company's 60%
guaranty of the fixed charges of NOARK. A statement setting
forth the
computation of the unaudited ratio of earnings to fixed charges
is filed as an
exhibit to the registration statement of which this Prospectus
Supplement is a
part.
EXHIBIT 12
SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ in 000's)
Year Ended December 31
- ---------------------------------------------------------
1996 1995 1994 1993
1992 1991
---- ---- ---- ----
- ---- ----
Income before
income taxes $30,937 $18,794 $40,853 $46,882
$35,584 $32,222
Add:
Fixed charges,
Southwestern 17,336 13,773 10,616 10,702
11,636 11,398
Fixed charges,
NOARK (1) 3,802 3,740 3,642 3,312
901 13
Amortization
of capitalized
interest 931 825 813 677
470 341
Deduct:
Interest
capitalized on
oil and gas
properties 4,083 2,305 1,562 1,441
1,491 1,404
------- ------- ------- -------
- ------- -------
Earnings for
computation $48,922 $34,828 $54,362 $60,132
$47,100 $42,570
======= ======= ======= =======
======= =======
Fixed charges:
Southwestern:
Interest on
indebtedness $16,652 $13,398 $10,285 $10,399
$11,335 $11,155
Amortization
of debt
discount
and expense 533 225 180 174
144 85
Portion of
rents
representative
of interest 150 150 150 129
156 158
------- ------- ------- -------
- ------- -------
Total fixed
charges,
Southwestern 17,336 13,773 10,615 10,702
11,635 11,398
NOARK (2) 4,296 4,682 4,605 4,199
3,661 371
------- ------- ------- -------
- ------- -------
Total fixed
charges $21,631 $18,455 $15,220 $14,901
$15,296 $11,769
======= ======= ======= =======
======= =======
Ratio of earnings
to fixed charges 2.3 1.9 3.6 4.0
3.1 3.6
======= ======= ======= =======
======= =======
(1) Represents Southwestern's ownership share of interest on
indebtedness
and amortization of debt expense of the NOARK Pipeline
System, Limited
Partnership ("NOARK").
(2) Represents Southwestern's 60% guaranty of NOARK's interest on
indebtedness and amortization of debt expense.