EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges
Continental Resources, Inc.   Exhibit 12.1

Ratio of Earnings to Fixed Charges

(in thousands, except ratio)

 

     Year Ended December 31,    Six Months Ended June 30,  
     Pro forma     Historical    Pro forma     Historical  
     2009     2009    2008    2007    2006    2005    2010     2010  

Earnings

                      

Income before income taxes

    110,008      110,008    518,530    296,777    252,956    195,446    281,373      281,373   

Plus: Fixed charges

    72,945      23,232    12,188    12,939    11,310    14,220    36,892      20,484   

Less: Capitalized interest

    —        —      —      —      —      —      (221 )    (221 ) 

Pro forma adjustments:

                      

Plus: Reduction in revolver interest expense

    13,634      —      —      —      —      —      2,059      —     

Less: Interest expense on Senior Notes

    (61,528 )    —      —      —      —      —      (17,967 )    —     

Less: Amortization of Senior Notes costs

    (1,819 )    —      —      —      —      —      (500 )    —     
                                           

Earnings, as defined

    133,240      133,240    530,718    309,716    264,266    209,666    301,636      301,636   
                                           

Fixed charges

                      

Interest expense

    23,232      23,232    12,188    12,939    11,310    14,220    20,263      20,263   

Capitalized interest

    —        —      —      —      —      —      221      221   

Pro forma adjustments:

                      

Less: Reduction in revolver interest expense

    (13,634 )    —      —      —      —      —      (2,059 )    —     

Plus: Interest expense on Senior Notes

    61,528      —      —      —      —      —      17,967      —     

Plus: Amortization of Senior Notes costs

    1,819      —      —      —      —      —      500      —     
                                           

Fixed charges, as defined

    72,945      23,232    12,188    12,939    11,310    14,220    36,892      20,484   
                                           

Ratio of earnings to fixed charges

    1.8x (1)    5.7x    43.5x    23.9x    23.4x    14.7x    8.2x (1)    14.7x   
                                           

 

(1)

Adjusted to give effect to a pro forma increase in interest expense resulting from the issuance of the notes on April 5, 2010, the September 2009 issuance of our 8 1/4% Senior Notes due 2019, and the September 2010 issuance of our 7 1/8% Senior Notes due 2021 and the utilization of the net proceeds from the sale of those notes to repay indebtedness that was outstanding under our revolving credit facility during the six months ended June 30, 2010 and year ended December 31, 2009, as applicable, as if the issuance of those notes had occurred on January 1, 2010 and January 1, 2009, respectively.