EX-12 4 d132224dex12.htm EX-12 EX-12

EXHIBIT 12

COMPUTATION RATIO OF EARNINGS TO FIXED CHARGES

Unit Corporation

Ratio of Earnings to Fixed Charges

The table below sets forth the ratios of earnings to fixed charges of the Company and its consolidated subsidiaries for the periods indicated. The ratios have been computed using the amounts for the Company and, its consolidated subsidiaries. Earnings available for fixed charges represent earnings from continuing operations before income taxes and fixed charges less income from investments accounted for by the equity method. Fixed charges represent interest incurred and guaranteed plus that portion of rental expense deemed to be the equivalent of interest.

 

     Nine months
ended
September 30,
2015		     Fiscal years ended December 31,  
(dollars in thousands)      2014      2013      2012      2011      2010  

Income (loss) from continuing operations before income taxes

    $ (1,166,960 )    $ 222,939       $ 301,469       $ 39,402       $ 319,002       $ 237,221   

(Income) loss from equity investments

      (18 )      133         238         205         295         (69 ) 

Distribution from equity investments

      —          303         144         —           —           682   

Interest expense

      23,111        16,904         14,578         13,878         4,167         —     

Amortization of capitalized interest

    (3) 22,661      (3) 5,454         3,080       (3) 4,922         1,654         1,145   

Amortization of bond discount

      371        467         437         259         —           —     
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Earnings

    $ (1,120,835 )    $ 246,200       $ 319,946       $ 58,666       $ 325,118       $ 238,979   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges(1):

                 

Interest expense

    $ 23,111      $ 16,904       $ 14,578       $ 13,878       $ 4,167       $ —     

Capitalized interest

      16,573        32,246         33,670         18,867         11,478         4,526   

Amortization of bond discount

      371        467         437         259         —           —     
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges

    $ 40,055      $ 49,617       $ 48,685       $ 33,004       $ 15,645       $ 4,526   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges(2)

    (4) —          5.0x         6.6x         1.8x         20.8x         52.8x   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) Fixed charges are determined as defined in instructions for Item 503 of Regulation S-K of the Securities Act
(2) There were no shares of preferred stock outstanding during any of the time periods indicated in the table.
(3) Amortization of capitalized interest includes the proportionate amount related to the ceiling test write-down.
(4) Earnings for the nine months ended September 30, 2015 were insufficient to cover fixed charges by $1.2 billion.

 

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