1
EXHIBIT 12.1
DEVON ENERGY CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
THREE
MONTHS
YEAR ENDED DECEMBER 31, ENDED
------------------------------------------------------------------------ MARCH 31,
1991 1992 1993 1994 1995 1996
------------ ----------- ----------- ----------- ----------- -----------
Earnings (loss) before income taxes
and cumulative effect of change in
accounting principle per
consolidated statements of
operations......................... $(21,144,443) 19,485,817 25,960,772 21,356,711 25,621,899 9,743,926
Add:
Interest expense................... 2,208,782 2,644,063 3,421,742 5,438,911 7,051,142 2,481,156
Estimated interest factor of
operating lease payments......... 177,165 153,384 162,518 173,923 182,129 52,634
------------ ----------- ----------- ----------- ----------- -----------
Earnings (loss), as adjusted(A)...... $(18,758,496) 22,283,264 29,545,032 26,969,545 32,855,170 12,277,716
============ =========== =========== =========== =========== ===========
Fixed charges:
Interest costs incurred............ 2,208,782 2,644,063 3,421,742 5,438,911 7,051,142 2,461,156
Estimated interest factor of
operating lease payments......... 177,165 153,384 162,518 173,923 182,129 52,634
------------ ----------- ----------- ----------- ----------- -----------
Total fixed charges(B)............... $ 2,385,947 2,797,447 3,584,260 5,612,834 7,233,271 2,533,790
============ =========== =========== =========== =========== ===========
Radio of earnings to fixed
charges(A)/(B)..................... -- 7.97 8.24 4.80 4.54 4.85
============ =========== =========== =========== =========== ===========
Amount of fixed charges in excess of
earnings(B-A)...................... $ 21,144,443 -- -- -- -- --
============ =========== =========== =========== =========== ===========
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AS ADJUSTED FOR THE CONVERTIBLE PREFERRED SECURITIES OFFERING
THREE MONTHS
YEAR ENDED ENDED
DECEMBER 31, MARCH 31,
1995 1996
------------ ------------
Earnings as adjusted (as calculated above)(1)..................... $32,855,170 12,277,716
=========== ===========
Fixed charges (as shown above).................................... 7,233,271 2,533,790
Reduction of interest expense as a result of use of funds received
from Convertible Preferred Securities issued to retire long-term
debt............................................................ (6,475,748) (2,306,459)
Distribution requirements on the Convertible Preferred
Securities...................................................... 9,717,500 2,429,375
Amortization of costs incurred in connection with the Convertible
Preferred Securities offering................................... 166,167 41,542
----------- -----------
Fixed charges adjusted for the Convertible Preferred Securities
offering........................................................ $10,641,190 2,698,248
=========== ===========
Ratio of earnings to fixed charges adjusted for the Convertible
Preferred Securities offering................................... 3.09 4.55
=========== ===========
- ---------------
(1) Earnings for the year 1995 do not include assumed interest earnings on the
excess of funds received from the issuance of the Convertible Preferred
Securities above the average long-term debt outstanding during the year.
Such excess was approximately $47.4 million.