1
EXHIBIT 12
DENBURY RESOURCES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
NINE MONTHS ENDED
YEARS ENDED DECEMBER 31, SEPTEMBER 30,
----------------------------------------------------------- ----------------------------
PRO FORMA PRO FORMA
1992 1993 1994 1995 1996 1996 1996 1997 1997
------- ------- ------- ------- ------- -------- ------- ------- --------
Earnings:
Pretax income from continuing
operations ......................... $ (335) $ 1,114 $ 1,881 $ 1,081 $14,056 $13,035 $ 7,272 $16,878 $13,243
Fixed charges .......................... 18 99 1,180 2,161 4,080 14,729 3,385 498 8,474
------- ------- ------- ------- ------- ------- ------- ------- -------
Earnings ............................. (317) 1,213 3,061 3,242 18,136 27,874 10,657 17,376 21,717
------- ------- ------- ------- ------- ------- ------- ------- -------
Fixed Charges:
Interest expense ..................... 8 83 1,146 2,085 1,993 12,642 1,530 387 8,363
Interest component of rent expense ... 10 16 34 76 116 116 81 111 111
Imputed preferred divided ............ -- -- -- -- 1,281 1,281 1,153 -- --
Preferred dividend tax effect ........ -- -- -- -- 690 690 621 -- --
------- ------- ------- ------- ------- ------- ------- ------- -------
Fixed charges ...................... $ 18 $ 99 $ 1,180 $ 2,161 $ 4,080 $14,729 $ 3,385 $ 498 $ 8,474
------- ------- ------- ------- ------- ------- ------- ------- -------
Ratio of earnings to fixed ............. (a) 12.3 2.6 1.5 4.4 1.9 3.1 34.9 2.6
======= ======= ======= ======= ======= ======= ======= ======= =======
- ---------------
(a) Earnings were inadequate to cover fixed charges as there was a $317,000
deficiency.