Exhibit 12.1 - COMPUTATION OF DEBT TO ADJUSTED EBITDA
CONTINENTAL RESOURCES, INC.
YEAR ENDED DECEMBER 31,
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1997 1998 1999 2000 2001
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NET INCOME 26,197 (17,980) 3,920 37,780 11,667
INCOME TAXES (8,941) -- -- -- --
INTEREST EXPENSE 4,804 12,248 16,534 15,786 15,141
DD&A 33,354 38,716 20,385 21,945 33,569
EXPLORATION EXPENSE 6,807 7,106 7,750 13,321 19,927
LITIGATION SETTLEMENT (7,500) -- -- -- --
------ ------- ------- ------- -------
ADJUSTED EBITDA (1) 54,721 40,090 48,589 88,832 80,304
TOTAL DEBT 79,632 167,639 170,637 140,350 183,395
TOTAL DEBT TO ADJUSTED EBITDA 1.5 4.2 3.5 1.6 2.2
<FN>
(1) 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>