Exhibit 12.1
COMPUTATION OF DEBT TO ADJUSTED EBITDA
CONTINENTAL RESOURCES, INC.
YEAR ENDED DECEMBER 31,
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1995 1996 1997 1998 1999
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NET INCOME 3,869 13,325 26,197 (17,980) 3,920
INCOME TAXES 2,252 8,238 (8,941) - -
INTEREST EXPENSE 2,396 4,550 4,804 12,248 16,534
DD&A 9,614 22,876 33,354 38,716 20,385
EXPLORATION EXPENSE 6,184 4,513 6,807 7,106 7,750
LITIGATION SETTLEMENT (7,500) -
------ ------ ------ ------- ------
ADJUSTED EBITDA<F1> 24,315 53,502 54,721 40,090 48,589
TOTAL DEBT 44,265 54,759 79,632 167,639 170,637
TOTAL DEBT TO ADJUSTED EBITDA 1.8 1.0 1.5 4.2 3.5
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<FN>
<F1> Adjusted EBITDA represents earnings before interest expense, income
taxes, depreciation, depletion, amortization and exploration expense,
excluding proceeds from litigation settlements. Adjusted EBITDA is not
a measure of cash flow as determined by generally accepted accounting
principles ("GAAP"). Adjusted EBITDA should not be considered as an
alternative to, or more meaningful than, net income or cash flow as
determined in accordance with GAAP or as an indicator of a company's
operating performance or liquidity. Certain items excluded from
Adjusted EBITDA are significant components in understanding and
assessing a company's financial performance, such as a company's cost
of capital and tax structure, as well as historic costs of depreciable
assets, none of which are components of Adjusted EBITDA. The Company's
computations of Adjusted EBITDA may not be comparable to other
similarly titled measures of other companies. The Company believes that
Adjusted EBITDA is a widely followed measure of operating performance
and may also be used by investors to measure the Company's ability to
meet future debt service requirements, if any.
</FN>