EX-12 3 d754523dex12.htm EX-12 EX-12

Exhibit 12

Whiting Petroleum Corporation

Ratio of Earnings to Fixed Charges

Ratio of Earnings to Fixed Charges and Preferred Dividends

(in thousands)

 

     Three Months                                
     Ended     Year Ended December 31,  
     March 31, 2014     2013     2012     2011     2010     2009  

Fixed charges:

            

Interest expensed

   $ 36,784      $ 100,531      $ 65,692      $ 53,834      $ 48,486      $ 53,582   

Interest capitalized

     706        1,515        2,749        3,574        2,920        3,406   

Amortized premiums, discounts and capitalized expenses related to indebtedness

     5,360        12,405        9,518        8,682        10,592        11,026   

Estimate of interest within rental expense

     321        1,008        1,145        883        684        603   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

   $ 43,171      $ 115,459      $ 79,104      $ 66,973      $ 62,682      $ 68,617   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings:

            

Income (loss) before income taxes

   $ 185,412      $ 571,871      $ 662,011      $ 780,319      $ 541,443      $ (162,835

Income from equity investees

     (72     (542     (588     (1,032     (1,311     (1,581

Fixed charges (above)

     43,171        115,459        79,104        66,973        62,682        68,617   

Amortization of capitalized interest

     543        2,020        1,745        1,409        1,117        776   

Distributed income from equity investees

     393        654        930        1,533        1,323        1,780   

Interest capitalized

     (706     (1,515     (2,749     (3,574     (2,920     (3,406

Noncontrolling interest in pre-tax income of subsidiaries

     18        52        90        59        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings

   $ 228,759      $ 687,999      $ 740,543      $ 845,687      $ 602,334      $ (96,649
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges (unaudited) (1)

     5.30        5.96        9.36        12.63        9.61        —     

Fixed charges and preferred stock dividends:

            

Fixed charges (above)

   $ 43,171      $ 115,459      $ 79,104      $ 66,973      $ 62,682      $ 68,617   

Preferred stock dividends (2)

     —          844        1,722        1,704        26,516        15,695   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges and preferred stock dividends

   $ 43,171      $ 116,303      $ 80,826      $ 68,677      $ 89,198      $ 84,312   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges and preferred stock dividends (unaudited) (3)

     5.30        5.92        9.16        12.31        6.75        —     

 

(1) For the year ended December 31, 2009, earnings were inadequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.00x (one-to-one coverage) was $165.3 million for the year ended December 31, 2009.
(2) Preferred stock dividends represent pre-tax earnings required to cover any referred stock dividend requirements using our effective tax rate for the relevant period.
(3) For the year ended December 31, 2009, earnings were inadequate to cover fixed charges and perferred stock dividends, and the ratio of earnings to fixed charges and perferred stock dividends therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges and perferred stock dividends to equal 1.00x (one-to-one coverage) was $181.0 million for the year ended December 31, 2009.