EX-12.1 2 exhibit12_1.htm EXHIBIT 12.1 exhibit12_1.htm
Exhibit 12.1
McMoRan Exploration Co.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands)

Computation of Ratio of Earnings to Fixed Charges:
  
 
Years Ended December 31,
  
 
2012
  
2011
  
2010
  
2009
  
2008
  
Loss from Continuing Operations a
(97,033
)
(6,604
)
(116,976
)
(204,889
)
(211,198
)
ADD:
                    
(Benefit) Provision for Income Taxes
-
  
-
  
-
  
(2,445
)
2,508
  
Interest Expense
-
  
8,782
  
38,216
  
42,943
  
50,890
  
Rental Expense Factor
373
  
459
  
653
  
598
  
387
  
Earnings Available For Fixed Charges
(96,660
)
2,637
  
(78,107
)
(163,793
)
(157,413
)
                     
Interest Expense
-
  
8,782
  
38,216
  
42,943
  
50,890
  
Capitalized Interest
56,505
  
47,403
  
10,100
  
3,929
  
5,001
  
Rental Expense Factor
373
  
459
  
653
  
598
  
387
  
Fixed Charges
56,878
  
56,644
  
48,969
  
47,470
  
56,278
  
                     
Ratio of Earnings to Fixed Charges
-
b
-
b
-
b
-
b
-
b
                     
Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends:
          
     
 
2012
  
2011
  
2010
  
2009
  
2008
  
Loss from Continuing Operations a
(97,033
)
(6,604
)
(116,976
)
(204,889
)
(211,198
)
ADD:
                    
(Benefit) Provision for Income Taxes
-
  
-
  
-
  
(2,445
)
2,508
  
Interest Expense
-
  
8,782
  
38,216
  
42,943
  
50,890
  
Rental Expense Factor
373
  
459
  
653
  
598
  
387
  
Earnings Available For Fixed Charges and
                    
Preferred Dividends
(96,660
)
2,637
  
(78,107
)
(163,793
)
(157,413
)
                     
Interest Expense
-
  
8,782
  
38,216
  
42,943
  
50,890
  
Capitalized Interest
56,505
  
47,403
  
10,100
  
3,929
  
5,001
  
Preferred dividends c
41,276
  
42,800
  
77,101
  
14,332
  
22,286
  
Rental Expense Factor
373
  
459
  
653
  
598
  
387
  
Fixed Charges and Preferred Dividends
98,154
  
99,444
  
126,070
  
61,802
  
78,564
  
                     
Ratio of earnings to fixed charges and preferred dividends
-
d
-
d
-
d
-
d
-
d
                     
a.  
Loss represents McMoRan's continuing oil and gas operations.
b.  
McMoRan sustained a net loss from continuing operations of $97.0 million in 2012, $117.0 million in 2010, $204.9 million in 2009 and $211.2 million in 2008.  These losses were inadequate to cover McMoRan’s fixed charges of $56.9 million in 2012, $49.0 million in 2010, $47.5 million in 2009 and $56.3 million in 2008.  McMoRan’s earnings available for fixed charges were insufficient to cover its fixed charges by $54.0 million in 2011.
c.  
Preferred dividends associated with McMoRan's 8% convertible perpetual preferred stock, 6¾% mandatory convertible preferred stock and 5.75% convertible perpetual preferred stock. 2010 includes a $51.6 million preferred dividend recognized upon issuance of the 5.75% convertible perpetual preferred stock representing a beneficial conversion option for the intrinsic value of the amount by which McMoRan’s common stock at the date of issuance exceeded the conversion price of the 5.75% convertible perpetual preferred stock.
d.  
McMoRan sustained a net loss from continuing operations of $97.0 million in 2012,  $117.0 million in 2010, $204.9 million in 2009 and $211.2 million in 2008.  These losses were inadequate to cover McMoRan’s fixed charges and preferred dividends of $98.2 million in 2012, $126.1 million in 2010, $61.8 million in 2009 and $78.6 million in 2008.  McMoRan’s earnings available for fixed charges and preferred dividends were insufficient to cover its fixed charges and preferred dividends by $96.8 million in 2011.