EX-12.1 3 a2011q3_exx121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 2011Q3_Ex_12.1


 
 
 
 
 
 
 
 
 
 
 
Exhibit 12.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PETROLEUM DEVELOPMENT CORPORATION
Statement of Computation of Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months
 
 
 
 
 
 
 
 
 
 
 
 
Ended
 
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
Year Ended December 31,
 
 
2011
 
2010
 
2009
 
2008
 
2007 (d)
 
2006 (d)
 
 
 
 
(dollars in thousands)
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss ) from continuing operations before income taxes
 
$
29,006

 
$
8,113

 
$
(125,172
)
 
$
163,168

 
$
42,590

 
$
379,800

Fixed charges (see below)
 
30,351

 
35,197

 
39,403

 
31,629

 
12,796

 
4,187

Amortization of capitalized interest
 
518

 
788

 
991

 
744

 
366

 
52

Interest capitalized
 
(1,102
)
 
(301
)
 
(751
)
 
(2,618
)
 
(3,023
)
 
(1,620
)
Total adjusted earnings (loss) available for fixed charges
 
$
58,773

 
$
43,797

 
$
(85,529
)
 
$
192,923

 
$
52,729

 
$
382,419

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
 
Interest and debt expense (a)
 
$
27,625

 
$
33,250

 
$
37,208

 
$
28,132

 
$
9,279

 
$
2,443

Interest capitalized
 
1,102

 
301

 
751

 
2,618

 
3,023

 
1,620

Interest component of rental expense (b)
 
1,624

 
1,646

 
1,444

 
879

 
494

 
124

Total fixed charges
 
$
30,351

 
$
35,197

 
$
39,403

 
$
31,629

 
$
12,796

 
$
4,187

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
1.9x

 
1.2x

 
—

(c)
6.1x

 
4.1x

 
91.3x

 
 
 
 
 
 
 
 
 
 
 
 
 
__________
(a)
Represents interest expense on long-term debt and amortization of debt discount and issuance costs.
(b)
Represents the portion of rental expense which we believe represents an interest component.
(c)
For the year ended December 31, 2009, earning were insufficient to cover total fixed charges by $124.9 million.
(d)
Total adjusted earnings available for fixed charges for the years ended December 31, 2006 through 2007 do not present the effects of the divestitures of our Michigan and North Dakota assets as discontinued operations as the amounts related to these operations were immaterial to these years.