EX-12.1 3 a2011k_exx121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 2011K_Ex_12.1


 
 
 
 
 
 
 
 
 
 
Exhibit 12.1

 
 
 
 
 
 
 
 
 
 
 
PETROLEUM DEVELOPMENT CORPORATION
Statement of Computation of Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2011
 
2010
 
2009
 
2008
 
2007 (d)
 
 
(dollars in thousands)
Earnings
 
 
 
 
 
 
 
 
 
 
Income (loss ) from continuing operations before income taxes
 
$
2,895

 
$
6,690

 
$
(125,172
)
 
$
163,168

 
$
42,590

Fixed charges (see below)
 
40,511

 
35,197

 
39,403

 
31,629

 
12,796

Amortization of capitalized interest
 
676

 
788

 
991

 
744

 
366

Interest capitalized
 
(1,544
)
 
(301
)
 
(751
)
 
(2,618
)
 
(3,023
)
Total adjusted earnings (loss) available for fixed charges
 
$
42,538

 
$
42,374

 
$
(85,529
)
 
$
192,923

 
$
52,729

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
Interest and debt expense (a)
 
$
36,985

 
$
33,250

 
$
37,208

 
$
28,132

 
$
9,279

Interest capitalized
 
1,544

 
301

 
751

 
2,618

 
3,023

Interest component of rental expense (b)
 
1,982

 
1,646

 
1,444

 
879

 
494

Total fixed charges
 
$
40,511

 
$
35,197

 
$
39,403

 
$
31,629

 
$
12,796

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
1.1x

 
1.2x

 
—

(c)
6.1x

 
4.1x

 
 
 
 
 
 
 
 
 
 
 
__________
(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 year ended December 31, 2007, do not present the effects of the divestitures of our Michigan and North Dakota assets as discontinuing operations as the amounts related to these operations were immaterial.