Exhibit 12.1 - COMPUTATION OF RATIO OF DEBT TO ADJUSTED EBITDA
CONTINENTAL RESOURCES, INC.
YEAR ENDED DECEMBER 31,
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1998 1999 2000 2001 2002
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NET INCOME (LOSS) (17,980) 3,920 37,780 11,667 (20,032)
INCOME TAXES - - - - -
INTEREST EXPENSE 12,826 17,370 16,514 15,674 18,401
DD&A 30,198 19,549 19,552 27,731 31,380
PROPERTY IMPAIRMENTS 10,165 5,154 5,631 10,113 25,686
EXPLORATION EXPENSE 5,468 3,191 9,965 15,863 10,229
LITIGATION SETTLEMENT - - - - -
------- ------- ------- ------- -------
ADJUSTED EBITDA (1) 40,677 49,184 89,442 81,048 65,664
TOTAL DEBT 167,639 170,637 140,350 183,395 247,105
TOTAL DEBT TO ADJUSTED EBITDA 4.1 3.5 1.6 2.3 3.8
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<FN>
(1) Adjusted EBITDA represents earnings before interest expense, income taxes, depreciation, depletion, amortization,
property impairments 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' ability to meet future
debt service requirements, if any.
</FN>