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EXHIBIT 12.2
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
YEAR ENDED DECEMBER 31, 1993
(DOLLARS IN THOUSANDS)
PRO
HISTORICAL ADJUSTMENTS(1) FORMA
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Net pretax income(2)..................................... $ 26,983 $ (9,007) $ 17,976
Fixed Charges
Interest expense....................................... 30,506 9,007 39,513
Preferred stock dividends of a subsidiary.............. 1,681 1,681
Capitalized debt cost.................................. 1,536 1,536
Interest portion of rent expenses...................... 2,777 2,777
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Total fixed charges............................ 36,500 9,007 45,507
Less: Capitalized interest, net........................ 4,623 4,623
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31,877 9,007 40,884
Earnings before fixed charges............................ $ 58,860 $ 58,860
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Ratio of earnings to fixed charges....................... 1.61 1.29
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(1) The pro forma adjustments give effect to increased interest expense, as if
such transaction had taken place January 1, 1993 as a result of the issuance
of $200 million of the Notes at a pro forma annual interest rate of 8.6% and
the application of proceeds to the reduction of debt under the revolving
credit facility and the uncommitted and unsecured lines of credit.
(2) During 1993, the Company recorded a non-cash charge to depreciation,
depletion and amortization of $103 million pretax ($48 million after-tax)
for the write-down of its investment in the U. K. North Sea's Piper field.
Excluding the effect of the Piper write-down, the historical ratio of
earnings to fixed charges for 1993 would have been 4.45. Excluding the
effect of the Piper write-down, this pro forma ratio would have been 3.57.