EX-99.1 6 d58738exv99w1.htm STATEMENT SHOWING COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES exv99w1
Exhibit 99.1
ENCORE ACQUISITION COMPANY
RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES
(in thousands, except ratios)
                                 
    Three months ended June 30,     Six months ended June 30,  
    2008     2007     2008     2007  
 
                                
Income (loss) before income taxes and minority interest
   $ (72,024 )   $ 23,695     $ (21,977 )   $ (21,753 )
Adjustments:
                                
Add fixed charges:
                                
Interest expense
     16,785       27,820       36,545       44,107  
Rental expense attributable to interest
     434       521       826       1,005  
 
                        
Total fixed charges
     17,219       28,341       37,371       45,112  
 
                        
 
                                
Adjusted earnings
   $ (54,805 )   $ 52,036     $ 15,394     $ 23,359  
 
                        
 
                                
Ratio of earnings (loss) to fixed charges (a)
     (3.2 )     1.8       0.4       0.5  
 
                        
 
(a)   For the three and six months ended June 30, 2008, earnings as defined were inadequate to cover fixed charges as defined by $72.0 million and $22.0 million, respectively. For the six months ended June 30, 2007, earnings as defined were inadequate to cover fixed charges as defined by $21.8 million.