EX-12.1 10 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of ratio of earnings to fixed charges

Exhibit 12.1

CARRIZO OIL AND GAS, INC.

STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND

EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

     Years Ended December 31  
     2010     2009     2008     2007     2006  
Earnings    (In thousands, except ratios)  

Income (loss) before income taxes and equity in income of investees

    $ 15,679      $ (318,152 )    $ (65,772 )    $ 24,712      $ 28,446   

Interest expense

      43,264        38,286        30,257        26,403        19,071   

Less interest capitalized

      (20,746 )      (19,696 )      (20,527 )      (11,718 )      (9,975 ) 

Interest portion of rental expense

      1,292        1,237        1,568        1,096        619   
                                        

Total Earnings

    $ 39,489      $ (298,325 )    $ (54,474 )    $ 40,493      $ 38,161   
                                        

Fixed Charges

           

Interest expense

    $ 43,264      $ 38,286      $ 30,257      $ 26,403      $ 19,071   

Interest portion of rental expense

      1,292        1,237        1,568        1,096        619   
                                        

Total Fixed Charges

    $ 44,556      $ 39,523      $ 31,825      $ 27,499      $ 19,690   
                                        

Ratio of Earnings to Fixed Charges

      0.89        —   (1)      —   (2)      1.47        1.94   
                                        
     Years Ended December 31  
     2010     2009     2008     2007     2006  
Earnings    (In thousands, except ratios)  

Income (loss) before income taxes and equity in income of investees

    $ 15,679      $ (318,152 )    $ (65,772 )    $ 24,712      $ 28,446   

Interest expense

      43,264        38,286        30,257        26,403        19,071   

Less interest capitalized

      (20,746 )      (19,696 )      (20,527 )      (11,718 )      (9,975 ) 

Interest portion of rental expense

      1,292        1,237        1,568        1,096        619   
                                        

Total Earnings

    $ 39,489      $ (298,325 )    $ (54,474 )    $ 40,493      $ 38,161   
                                        

Combined Fixed Charges and Preferred Stock Dividends

           

Interest expense

    $ 43,264      $ 38,286      $ 30,257      $ 26,403      $ 19,071   

Interest portion of rental expense

      1,292        1,237        1,568        1,096        619   

Preferred stock dividend requirements of Carrizo Oil & Gas, Inc.

      —          —          —          —          —     
                                        

Total Combined Fixed Charges and Preferred Stock Dividends

    $ 44,556      $ 39,523      $ 31,825      $ 27,499      $ 19,690   
                                        

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

      0.89        —   (1)      —   (2)      1.47        1.94   
                                        

 

(1) Earnings for the year ended December 31, 2009, were insufficient to cover fixed charges and combined fixed charges and preferred stock dividends by $298.3 million due to non-cash impairments of oil and gas properties of $338.9 million.

 

(2) Earnings for the year ended December 31, 2008, were insufficient to cover fixed charges and combined fixed charges and preferred stock dividends by $54.5 million due to a non-cash impairment of oil and gas properties of $178.5 million.