Exhibit 12.1 - COMPUTATION OF RATIO OF DEBT TO ADJUSTED EBITDA CONTINENTAL RESOURCES, INC. YEAR ENDED DECEMBER 31, -------------------------------------------------------------- 1994 1995 1996 1997 1998 _____ _____ _____ _____ _____ NET INCOME 2,875 3,869 13,325 26,197 (17,980) INCOME TAXES 1,596 2,252 8,238 (8,941) 0 INTEREST EXPENSE 670 2,396 4,550 4,804 12,248 DD&A 6,068 9,614 22,876 33,354 38,716 EXPLORATION EXPENSE 6,338 6,184 4,513 6,807 7,106 LITIGATION SETTLEMENT 0 0 0 (7,500) 0 ------- ------- ------- ------- ------- ADJUSTED EBITDA (1)<F1> 17,547 24,315 53,502 54,721 40,090 TOTAL DEBT 6,272 44,265 54,759 79,632 167,639 TOTAL DEBT TO ADJUSTED EBITDA 0.4 1.8 1.0 1.5 4.2 <FN> <F1> (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>