Exhibit 12.3
COMPUTATION OF RATIO OF ADJUSTED EBITDA TO INTEREST EXPENSE
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) 0 0
INTEREST EXPENSE 2,396 4,550 4,804 12,248 16,534
DD&A 9,614 22,876 33,354 38,716 22,385
EXPLORATION EXPENSE 6,184 4,513 6,807 7,106 7,750
LITIGATION SETTLEMENT 0 0 (7,500) 0 0
------ ------ ------ ------ ------
ADJUSTED EBITDA<F1> 24,315 53,502 54,721 40,090 48,589
TOTAL ADJUSTED EBITDA TO
INTEREST EXPENSE 10.1 11.8 11.4 3.3 3.0
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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. 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 ac-
cordance with GAAP or as an indicator of a company's operating per-
formance or liquidity. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company's finan-
cial performance, such as a company's cost of capital and tax structure,
as well as historic costs of depreciable assets, none of which are com-
ponents 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>