EXHIBIT 12.1
PIONEER NATURAL RESOURCES COMPANY
RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(in thousands, except ratios)
<Table>
<Caption>
THREE MONTHS YEAR ENDED DECEMBER 31,
ENDED --------------------------------------------------------------------------
MARCH 31, 2002 2001 2000 1999 1998 1997
-------------- ------------ ------------ ------------ ------------ ------------
Pretax earnings $ (2,369) $ 107,765 $ 158,499 $ (23,060) $ (730,826) $ (1,377,563)
------------ ------------ ------------ ------------ ------------ ------------
Adjustments:
Add fixed charges and preferred
stock dividends:
Interest expense 26,317 131,958 161,952 170,344 164,285 77,550
Interest capitalized 2,131 5,991 -- -- -- --
Rental expense attributable
to interest 495 2,200 2,333 2,300 2,967 1,233
Preferred stock dividends
of subsidiary -- -- -- -- -- --
Preferred stock dividends of
the company -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total fixed charges and
preferred stock dividends 28,943 140,149 164,285 172,644 167,252 78,783
------------ ------------ ------------ ------------ ------------ ------------
Deduct:
Interest capitalized 2,131 5,991 -- -- -- --
Preferred stock dividends
of subsidiary -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total deductions 2,131 5,991 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Adjusted earnings $ 24,443 $ 241,923 $ 322,784 $ 149,584 $ (563,574) $ (1,298,780)
============ ============ ============ ============ ============ ============
Ratio of earnings to fixed
charges(b) (a) 1.73 1.96 (a) (a)
============ ============ ============ ============ ============ ============
Ratio of earnings to fixed charges
and preferred stock dividends(c) (a) 1.73 1.96 (a) (a)
============ ============ ============ ============ ============ ============
</Table>
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(a) Earnings were insufficient to cover fixed charges and preferred stock
dividends by $4.5 million, $23.1 million, $730.8 million and $1,377.6
million during the quarter ended March 31, 2002 and for the years ended
December 31, 1999, 1998 and 1997, respectively.
(b) The ratio has been computed by dividing earnings by fixed charges. For
purposes of computing the ratio:
- earnings consist of income before income taxes and cumulative effect
of a change in accounting principle, plus fixed charges, net of
preferred stock dividends of a consolidated subsidiary and capitalized
interest; and
- fixed charges consist of interest expense, capitalized interest, the
portion of rental expense deemed to be representative of the interest
component of rental expense, and preferred stock dividends of a
consolidated subsidiary.
(c) The ratio has been computed by dividing earnings by fixed charges and
preferred stock dividends. For purposes of computing the ratio:
- earnings consist of income before income taxes and cumulative effect
of a change in accounting principle, plus fixed charges and preferred
stock dividends, net of preferred stock dividends of a consolidated
subsidiary and capitalized interest; and
- fixed charges and preferred stock dividends consist of interest
expense, capitalized interest, the portion of rental expense deemed to
be representative of the interest component of rental expense,
preferred stock dividends of a consolidated subsidiary, and preferred
stock dividends. The dividends on the 6 1/4% Cumulative Guaranteed
Monthly Income Convertible Preferred Shares of Parker & Parsley
Capital LLC, a subsidiary of Pioneer's predecessor, Parker & Parsley
Petroleum Company, were recorded as interest expense for reporting
purposes until those shares were converted into common stock of Parker
& Parsley on July 28, 1997.