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EXHIBIT 12
CHESAPEAKA ENERGY CORPORATION
CALCULATION OF RATIOS
Years Ended June 30,
1993 1994 1995 1996 1997
--------- --------- --------- --------- ---------
EBITDA
Income before income taxes and extraordinary item (464) 5,155 17,960 36,209 (180,330)
Gain from sale of Bayard common stock
Interest 2,282 2,676 6,627 13,679 18,550
Provision for legal settlements and other 1,286 -- -- -- --
Writedown of oil and gas property 236,000
DD&A 4,741 10,012 27,175 54,056 107,046
--------- --------- --------- --------- ---------
EBITDA 7,845 17,843 51,762 103,944 181,266
RATIO OF EARNINGS TO FIXED CHARGES
Income before income taxes and extraordinary item (464) 5,155 17,960 36,209 (180,330)
Interest 2,282 2,676 6,627 13,679 18,550
Bond discount amortization (a) -- -- -- -- --
Loan cost amortization 127 557 548 1,288 1,455
--------- --------- --------- --------- ---------
Earnings 1,945 8,388 25,135 51,176 (160,325)
Interest expense 2,282 2,676 6,627 13,679 18,550
Capitalized interest 192 356 1,574 6,428 12,935
Bond discount amortization (a) -- -- -- -- --
Loan cost amortization 127 557 548 1,288 1,455
--------- --------- --------- --------- ---------
Fixed Charges 2,601 3,589 8,749 21,395 32,940
Ratio n/a 2.3 2.9 2.4 (4.9)
(A) Bond discount excluded since
its included in interest expense
Insufficient coverage 656 0 0 0 193,265
RATIO OF EBITDA TO INT. EXP
EBITDA 7,845 17,843 51,762 103,944 181,266
Dividends on preferred stock 385
Interest expense 2,282 2,676 6,627 13,679 18,550
Ratio 2.9 6.7 7.8 7.6 9.8
Financial Results - Non Guarantors
Income from Continuing Ops. 2,424
Interest 10
Writedown of oil and gas properties --
DD&A 80
---------
EBITDA 2,514
Six Months Six Months Year Three Months Three Months 12 Months
Ended Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Mar. 31, Mar. 31, Mar. 31,
1996 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
EBITDA
Income before income taxes and extraordinary item 39,246 (31,574) (251,150) 25,360 (256,500) (533,010)
Gain from sale of Bayard common stock (74,000) (74,000) -- -- (74,000)
Interest 6,216 17,448 29,782 3,654 10,688 36,816
Provision for legal settlements and other -- -- -- -- -- --
Writedown of oil and gas property 110,000 346,000 -- 250,000 596,000
DD&A 38,079 62,822 131,789 25,536 32,722 138,975
--------- --------- --------- --------- --------- ---------
EBITDA 83,541 84,696 182,421 54,550 36,910 164,781
RATIO OF EARNINGS TO FIXED CHARGES
Income before income taxes and extraordinary item 39,246 (31,574) (251,150) 25,360 (256,500) (533,010)
Interest 6,216 17,448 29,782 3,654 10,688 36,816
Bond discount amortization (a) -- -- -- -- -- --
Loan cost amortization 762 794 1,487 300 396 1,583
--------- --------- --------- --------- --------- ---------
Earnings 46,224 (13,332) (219,881) 29,314 (245,416) (494,611)
Interest expense 6,216 17,448 29,782 3,654 10,688 36,816
Capitalized interest 7,607 5,087 10,415 2,744 2,252 9,923
Bond discount amortization (a) -- -- -- -- -- --
Loan cost amortization 762 794 1,487 300 396 1,583
--------- --------- --------- --------- --------- ---------
Fixed Charges 14,585 23,329 41,684 6,698 13,336 48,322
Ratio 3.2 (0.6) (5.3) 4.4 (18.4) (10.2)
(A) Bond discount excluded since its
included in interest expense
Insufficient coverage 0 36,661 261,565 0 258,752 542,933
RATIO OF EBITDA TO INT. EXP
EBITDA 83,541 84,696 182,421 54,550 36,910 164,781
Dividends on preferred stock -- -- -- -- -- --
Interest expense 6,216 17,448 29,782 3,654 10,688 36,816
Ratio 13.4 4.9 6.1 14.9 3.5 4.5
Financial Results - Non Guarantors
Income from Continuing Ops. 1,229 875 2,070 768 500 1,802
Interest 33 43 -- -- 43
Writedown of oil and gas properties -- -- --
DD&A 40 40 80 20 20 80
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EBITDA 1,269 948 2,193 786 520 1,925
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Years Ended June 30,
1993 1994 1995 1996 1997
--------- --------- --------- --------- ---------
Pending Acquisitions EBITDA
PRO FORMA FINANCIAL DATA (Restr. Subs. Only)
EBITDA 178,752
Interest expense before 18,540
Interest expense removed
Preferred Stock Dividend
Interest expense added
Total interest expense and preferred stock div
Ratio
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
(RESTR. SUBS. ONLY, w/ pref. Stk dividends))
Income before income taxes and extraordinary item
Interest
Preferred stock dividends
Bond discount amortization (A)
Loan cost amortization
Earnings
Interest expense
Capitalized interest
Preferred stock dividends
Bond discount amortization (A)
Loan cost amortization
Fixed Charges
Ratio
(A) Bond discount excluded since its
included in interest expense
Insufficient Coverage
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
(RESTR. SUBS. ONLY, w/o pref. Stk dividends))
Income before income taxes and extraordinary item
Interest
Bond discount amortization (A)
Loan cost amortization
Earnings
Interest expense
Capitalized interest
Bond discount amortization (A)
Loan cost amortization
Fixed Charges
Ratio
(A) Bond discount excluded since its
included in interest expense
Insufficient Coverage
Six Months Six Months Year Three Months Three Months 12 Months
Ended Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Mar. 31, Mar. 31, Mar. 31,
1996 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
Pending Acquisitions EBITDA 97,482 87,204
PRO FORMA FINANCIAL DATA (Restr. Subs. Only)
EBITDA 82,272 83,748 277,710 53,762 36,390 250,060
Interest expense before 6,216 17,415 29,739 3,654 10,688 36,773
Interest expense removed (4,725) (4,725) (9,450) (2,363) (2,363) (9,450)
Preferred Stock Dividend 8,050 8,050 16,100 4,025 4,025 16,100
Interest expense added 24,063 24,063 48,125 12,031 12,031 48,125
Total interest expense and preferred stock div 33,604 44,803 84,514 17,348 24,382 91,548
Ratio 2.4 1.9 3.3 3.1 1.5 2.7
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
(RESTR. SUBS. ONLY, w/ pref. Stk dividends))
Income before income taxes and extraordinary item (589,587)
Interest 75,448
Preferred stock dividends 16,100
Bond discount amortization (A) --
Loan cost amortization 1,583
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Earnings (496,456)
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 599,510
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
(RESTR. SUBS. ONLY, w/o pref. Stk dividends))
Income before income taxes and extraordinary item (589,587)
Interest 75,448
Bond discount amortization (A) --
Loan cost amortization 1,583
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Earnings (512,556)
Interest expense 75,448
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Years Ended June 30,
1993 1994 1995 1996 1997
--------- --------- --------- --------- ---------
Capitalized interest 6,428 --
Bond discount amortization (A) -- --
Loan cost amortization 1,958 --
------- ------
Fixed Charges 8,386
Ratio 4.6
(A) Bond discount excluded since its
included in interest expense
Insufficient Coverage --
Six Months Six Months Year Three Months Three Months 12 Months
Ended Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Mar. 31, Mar. 31, Mar. 31,
1996 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
Capitalized interest 7,607 5,067 10,415 2,744 2,252 9,923
Bond discount amortization (A) -- -- -- -- -- --
Loan cost amortization 1,078 794 1,487 300 396 1,583
------ ------ ------ ------ ------ ------
Fixed Charges 34,239 42,634 80,316 16,367 23,005 86,954
Ratio 1.1 (0.5) (3.0) 1.5 (10.9) (5.9)
(A) Bond discount excluded since its
included in interest expense
Insufficient Coverage -- 64,997 318,410 -- 272,966 599,510
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