EX-12.1 2 exhibit121.htm EXHIBIT 12.1 Exhibit 12.1


Exhibit 12.1
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
 
 
 
12/31/2011
 
 
12/31/2010
 
12/31/2009
 
12/31/2008
 
12/31/2007
 
Pre-tax income from continuing operations
 
$
(370,291
)
 
 
$
136,492

 
$
67,888

 
$
190,193

 
$
195,616

 
Interest expense
 
72,807

 
 
66,541

 
50,738

 
26,209

 
17,287

 
Amortization of capitalized interest
 
1,813

 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
29,117

 
 
28,321

 
30,107

 
23,209

 
18,104

 
Earnings
 
$
(295,671
)
 
 
$
203,033

 
$
118,626

 
$
216,402

 
$
212,903

 
Ratio of earnings to fixed charges
 
—

(1)
 
2.1
x
 
1.5
x
 
4.4
x
 
6.0
x
 
 ___________________________
(1)
For the year ended December 31, 2011, earnings were deficient by $397.6 million, which was due primarily to a pre-tax, non-cash charge to earnings of $625.0 million related to the impairment of our E. Texas natural gas properties.

For purposes of this table, “earnings” consists of income before income taxes from continuing operations plus fixed charges (excluding capitalized interest).  “Fixed charges” consists of interest expense and capitalized interest (for both continuing and discontinued operations).