EX-12.1 5 h89632ex12-1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 1 EXHIBIT 12.1 OCEAN ENERGY, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (AMOUNTS IN THOUSANDS EXCEPT RATIOS)
Six Months Ended June 30, Year Ended December 31, -------------- ---------------------------------------------------------------- 2001 2000 1999 1998 1997 1996 ---------- ---------- ---------- ---------- ---------- ---------- Earnings (loss) before income taxes and cumulative effect of changes in accounting principles and extraordinary items $ 380,535 $ 378,090 $ (21,624) $ (616,578) $ 103,212 $ 81,215 Fixed Charges: Interest expense 34,127 75,065 108,885 62,852 49,134 40,765 Capitalized interest 20,384 44,110 41,327 30,031 12,802 7,408 Assumed interest portion of rent expense 956 1,423 1,339 675 785 466 ---------- ---------- ---------- ---------- ---------- ---------- Total fixed charges 55,467 120,598 151,551 93,558 62,721 48,639 Pre-tax dividend requirements 2,982 5,763 3,275 688 -- 2,261 ---------- ---------- ---------- ---------- ---------- ---------- Total fixed charges and preferred stock dividends $ 58,449 $ 126,361 $ 154,826 $ 94,246 $ 62,721 $ 50,900 ========== ========== ========== ========== ========== ========== Earnings (loss) plus fixed charges excluding capitalized interest $ 415,618 $ 454,578 $ 88,600 $ (553,051) $ 153,131 $ 122,446 ========== ========== ========== ========== ========== ========== Ratio of earnings to fixed charges 7.5 3.8 0.6 (5.9) 2.4 2.5 ========== ========== ========== ========== ========== ========== Ratio of earnings to fixed charges and pre-tax dividend requirements 7.1 3.6 0.6 (5.9) 2.4 2.4 ========== ========== ========== ========== ========== ==========
"Earnings" consist of income (loss) from continuing operations before income taxes, plus interest expense on all indebtedness and an assumed interest portion of rent expense. "Fixed charges" consist of interest (whether expensed or capitalized) and that portion of rentals considered to be representative of the interest factor. "Fixed charges and preferred stock dividends" represent fixed charges (as described above) and our preferred stock dividend requirements adjusted to a pre-tax basis. Earnings to cover fixed charges were insufficient by $63 million and $646.6 million for the years ended December 31, 1999 and 1998, respectively. Earnings to cover fixed charges and preferred stock dividends were insufficient by $66.2 million and $647.3 million for the years ended December 31, 1999 and 1998, respectively.