EX-12.1 5 h99923exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 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 YEAR ENDED JUNE 30, DECEMBER 31, ------------ -------------- 2002 2001 ------------ -------------- Earnings (loss) before income taxes and cumulative effect of changes in accounting principles and extraordinary items................................... $ 125,363 $ 503,959 Fixed Charges: Interest expense........................ 29,104 62,707 Capitalized interest.................... 24,643 45,051 Assumed interest portion of rent expense............................... 4,144 1,721 ------------ -------------- Total fixed charges........................ 57,891 109,479 Pre-tax dividend requirements........... 2,955 5,909 ------------ -------------- Total fixed charges and preferred stock dividends............................... $ 60,846 $ 115,388 ============ ============== Earnings (loss) plus fixed charges excluding capitalized interest.......... $ 158,611 $ 568,387 ============ ============== Ratio of earnings to fixed charges......... 2.7 5.2 ============ ============== Ratio of earnings to fixed charges and preferred stock dividends............... 2.6 4.9 ============ ==============
"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 requirement adjusted to a pre-tax basis.