1 EXHIBIT 12 CHESAPEAKE ENERGY CORPORATION <Table> <Caption> Year Year Six Months Year Ended Ended Ended Ended June 30, June 30, Dec. 31, Dec. 31, 1996 1997 1997 1998 -------- -------- -------- -------- RATIO OF EARNINGS TO FIXED CHGS Income before income taxes and extraordinary item 36,209 (180,330) (31,574) (920,520) Interest 13,679 18,550 17,448 68,249 Preferred Stock Dividends -- Amortization of capitalized interest 234 8,771 4,386 12,240 Less: interest capitalized during year Bond discount amortization (a) -- -- Loan cost amortization 1,288 1,455 794 2,516 -------- -------- -------- -------- Earnings 51,410 (151,554) (8,946) (837,515) Interest expense 13,679 18,550 17,448 68,249 Capitalized interest 6,428 12,935 5,087 6,470 Preferred Stock Dividends Bond discount amortization (a) -- -- -- Loan cost amortization 1,288 1,455 794 2,516 -------- -------- -------- -------- Fixed Charges 21,395 32,940 23,329 77,235 Ratio 2.4 (4.6) (0.4) (10.8) (A) Bond discount excluded since its included in interest expense Insufficient coverage 0 184,494 32,275.5 914,750 <Caption> Year Year Qtr. Qtr. Ended Ended Ended Ended Dec. 31, Dec. 31, March 31, June 30, 1999 2000 2001 2001 -------- -------- --------- -------- RATIO OF EARNINGS TO FIXED CHGS Income before income taxes and extraordinary item 35,030 196,162 117,984 143,014 Interest 81,052 86,256 25,889 22,984 Preferred Stock Dividends -- -- -- -- Amortization of capitalized interest 1,047 1,226 310 310 Less: interest capitalized during year Bond discount amortization (a) Loan cost amortization 3,338 3,669 1,010 775 -------- -------- -------- -------- Earnings 120,467 287,313 145,193 167,083 Interest expense 81,052 86,256 25,889 22,984 Capitalized interest 3,356 2,452 871 1,250 Preferred Stock Dividends Bond discount amortization (a) -- -- -- -- Loan cost amortization 3,338 3,669 1,010 775 -------- -------- -------- -------- Fixed Charges 87,746 92,377 27,770 25,009 Ratio 1.4 3.1 5.2 6.7 (A) Bond discount excluded since its included in interest expense Insufficient coverage 0 0 0 0 </Table>