Exhibit 12.1
------------
Pure Resources, Inc.
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
Historical
------------------------------------------------------------------------
Year ended December 31, Six Months ended
June 30,
----------------------------------------------- -------------------
1996 1997 1998 1999 2000 2000 2001
------- ------- ------ ------- -------- ------- --------
(in thousands)
Pretax earnings $48,367 $33,353 $6,822 $26,473 $117,835 $47,226 $ 89,562
Adjustments:
Add fixed charges and preferred stock dividends:
Interest:
Expensed -- -- -- -- 4,396 661 11,036
Capitalized -- -- -- -- -- -- --
Rental expense attributable to interest 167 162 168 189 367 40 233
Preferred stock dividends -- -- -- -- -- -- --
------- ------- ------ ------- -------- ------- --------
Total fixed charges and preferred stock 167 162 168 189 4,763 701 11,269
dividends ------- ------- ------ ------- -------- ------- --------
Deduct:
Interest capitalized -- -- -- -- -- -- --
Preferred stock dividends -- -- -- -- -- -- --
------- ------- ------ ------- -------- ------- --------
Total deducts -- -- -- -- -- -- --
------- ------- ------ ------- -------- ------- --------
Adjusted earnings $48,534 $33,515 $6,990 $26,662 $122,598 $47,927 $100,831
======= ======= ====== ======= ======== ======= ========
Ratio of earnings to fixed charges and preferred
stock dividends 290.62 206.88 41.61 141.07 25.74 68.37 8.95
======= ======= ====== ======= ======== ======= ========
Pro Forma
-------------------------
Six Months
Year ended ended
December 31, June 30,
--------------------------
2000 2001
--------- ----------
Pretax earnings $129,662 $100,441
Adjustments:
Add fixed charges and preferred stock dividends:
Interest:
Expensed 45,560 19,007
Capitalized -- --
Rental expense attributable to interest 652 341
Preferred stock dividends -- --
-------- --------
Total fixed charges and preferred stock 46,212 19,348
dividends -------- --------
Deduct:
Interest capitalized -- --
Preferred stock dividends -- --
-------- --------
Total deducts -- --
-------- --------
Adjusted earnings $175,874 $119,759
======== ========
Ratio of earnings to fixed charges and preferred
stock dividends 3.81 6.19
======== ========