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Exhibit 12
CHESAPEAKE ENERGY CORPORATION
CALCULATION OF RATIOS
Six Months
Ended
Years Ended June 30, Dec. 31,
1993 1994 1995 1996 1997 1996
---- ---- ---- ---- ---- ----
RATIO OF EARNINGS TO FIXED CHARGES
Income before income taxes and
extraordinary item $ (464) $ 5,155 $ 17,960 $ 36,209 $(180,330) $ 39,246
Interest 2,282 2,676 6,627 13,679 18,550 6,216
Preferred Stock Dividends 385
Bond discount amortization (a) -- -- -- -- -- --
Loan cost
amortization 127 557 548 1,288 1,455 762
-------- -------- -------- -------- -------- --------
Earnings $ 2,330 $ 8,388 $ 25,135 $ 51,176 $(160,325) $ 46,224
Interest expense 2,282 2,676 6,627 13,679 18,550 6,216
Capitalized interest 192 356 1,574 6,428 12,935 7,607
Preferred Stock Dividends 385
Bond discount amortization (a) -- -- -- -- -- --
Loan cost amortization 127 557 548 1,288 1,455 762
-------- -------- -------- -------- -------- --------
Fixed Charges 2,986 3,589 8,749 21,395 32,940 14,585
Ratio n/a 2.3 2.9 2.4 (4.9) 3.2
(A) Bond discount excluded since its included in
interest expense
Insufficient coverage 656 0 0 0 193,265 0
Six Months Year Three Months Three Months 12 Months
Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Mar. 31, Mar. 31, Mar. 31,
1997 1997 1997 1998 1998
---- ---- ---- ---- ----
RATIO OF EARNINGS TO FIXED CHARGES
Income before income taxes and
extraordinary item (31,574) (251,150) 25,360 (256,500) (533,010)
Interest 17,448 29,782 3,654 10,688 36,816
Preferred Stock Dividends
Bond discount amortization (a) -- -- -- -- --
Loan cost amortization 794 1,487 300 396 1,583
-------- -------- -------- -------- --------
Earnings (13,332) (219,881) 29,314 (245,416) (494,611)
Interest expense 17,448 29,782 3,654 10,688 36,816
Capitalized interest 5,087 10,415 2,744 2,252 9,923
Preferred Stock Dividends
Bond discount amortization (a) -- -- -- -- --
Loan cost amortization 794 1,487 300 396 1,583
-------- -------- -------- -------- --------
Fixed Charges 23,329 41,684 6,698 13,336 48,322
Ratio (0.6) (5.3) 4.4 (18.4) (10.2)
(A) Bond discount excluded since its included in interest expense
Insufficient coverage 36,661 261,565 0 258,752 542,933
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
Income before income taxes and extraordinary item (587,785)
Interest 75,448
Preferred stock dividends 16,100
Bond discount amortization (A) -
Loan cost amortization 1,583
--------
Earnings (494,654)
Interest expense 75,448
Capitalized interest 9,923
Preferred stock dividends 16,100
Bond discount amortization (A) -
Loan cost amortization 1,583
--------
Fixed Charges 103,054
Ratio (4.8)
(A) Bond discount excluded since its included in interest expense
Insufficient Coverage 597,708