1
EXHIBIT 12.2
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
YEAR ENDED DECEMBER 31, 1993
(DOLLARS IN THOUSANDS)
PRO
HISTORICAL ADJUSTMENTS(1) FORMA
---------- ------------- --------
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
-------- --------- --------
Total fixed charges............................ 36,500 9,007 45,507
Less: Capitalized interest, net........................ 4,623 4,623
-------- --------- --------
31,877 9,007 40,884
Earnings before fixed charges............................ $ 58,860 $ 58,860
-------- --------- --------
-------- --------- --------
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 Debt Securities 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 the third quarter of 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.
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EXHIBIT 12.2
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
THREE MONTHS ENDED MARCH 31, 1994
(DOLLARS IN THOUSANDS)
PRO
HISTORICAL ADJUSTMENTS(1) FORMA
-------- -------------- --------
Net pretax income........................................ $ 70,384 $ (2,298) $ 68,086
Fixed Charges
Interest expense....................................... 6,343 2,298 8,641
Capitalized debt cost.................................. 394 394
Interest portion of rent expenses...................... 694 694
-------- --------- --------
Total fixed charges............................ 7,431 2,298 9,729
Less: Capitalized interest, net........................ 919 919
-------- --------- --------
6,512 2,298 8,810
Earnings before fixed charges............................ $ 76,896 $ 76,896
-------- --------- --------
-------- --------- --------
Ratio of earnings to fixed charges....................... 10.35 7.90
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(1) The pro forma adjustments give effect to increased interest expense, as if
such transaction had taken place January 1, 1994, as a result of the
issuance of $200 million of the Debt Securities 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.