EX-12.1 4 a2200227zex-12_1.htm EX-12.1

Exhibit 12.1

 

KODIAK OIL & GAS  CORP.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months

 

 

 

Year ended December 31,

 

Ended September 30,

 

 

 

2005

 

2006

 

2007

 

2008

 

2009

 

2010(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Annual Income / (Loss)

 

$

(2,005,091

)

$

(2,786,040

)

$

(38,185,890

)

$

(56,498,064

)

$

(2,563,298

)

$

1,962,551

 

Add fixed charges

 

$

3,463

 

$

5,621

 

$

13,077

 

$

14,909

 

$

10,566

 

$

87,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings as defined

 

$

(2,001,628

)

$

(2,780,419

)

$

(38,172,813

)

$

(56,483,155

)

$

(2,552,732

)

$

2,049,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated interest component of rent

 

$

3,463

 

$

5,621

 

$

13,077

 

$

14,909

 

$

10,566

 

$

8,297

 

Interest on outstanding loans

 

$

—

 

$

—

 

$

—

 

$

—

 

$

—

 

$

79,052

 

Total Fixed charges

 

$

3,463

 

$

5,621

 

$

13,077

 

$

14,909

 

$

10,566

 

$

87,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed charges

 

—

 

—

 

—

 

—

 

—

 

23.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated interest within rental expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total rent expense

 

$

48,164

 

$

62,738

 

$

144,298

 

$

243,791

 

$

248,621

 

$

195,400

 

Instrument,“Bank prime loan” rate Frequency,“Annual”;(1)

 

6.19

%

7.96

%

8.06

%

5.12

%

3.25

%

3.25

%

+ 1% premium, small cap company

 

1.00

%

1.00

%

1.00

%

1.00

%

1.00

%

1.00

%

TOTAL

 

7.19

%

8.96

%

9.06

%

6.12

%

4.25

%

4.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculated interest within rental expense

 

$

3,463

 

$

5,621

 

$

13,077

 

$

14,909

 

$

10,566

 

$

8,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges Coverage

 

$

(2,005,091

)

$

(2,786,040

)

$

(38,185,890

)

$

(56,498,064

)

$

(2,563,298

)

$

2,041,603

 

 

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, “earnings” include income before income taxes and fixed charges. “Fixed charges” include interest, whether expensed or capitalized. Earnings for the years ended December 31, 2005, 2006, 2007, 2008 and 2009 were insufficient to cover fixed charges by $1,960,390, $2,728,923, $38,054,651, $56,269,120 and $2,325,243, respectively.

 

(1)   Description,“Average majority prime rate charged by banks on short-term loans to business, quoted on an investment basis”

Note,“Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month.”

 

Note,“Annualized using a 360-day year or bank interest.”

 

Note,“Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered commercial banks. Prime is one of several base rates used by banks to price short-term business loans.”

 

(2)   Ratio annualized for consistent calculation purposes