EX-12 4 h87817ex12.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 1 EXHIBIT 12 CHESAPEAKE ENERGY CORPORATION $800 MILLION SENIOR NOTES OFFERING
YEAR YEAR ENDED ENDED SIX MONTHS YEAR YEAR YEAR QTR. JUNE JUNE ENDED ENDED ENDED ENDED ENDED 30, 30, DEC. 31, DEC. 31, DEC. 31, DEC. 31, MARCH 31, 1996 1997 1997 1998 1999 2000 2001 ------- ------- ---------- -------- ------- ------- --------- (in thousands, except for ratios) RATIO OF EARNINGS TO FIXED CHARGES Income before income taxes and extraordinary item 36,209 (180,330) (31,574) (920,520) 35,030 196,162 117,984 Interest 13,679 18,550 17,448 68,249 81,052 86,256 25,889 Preferred Stock Dividends -- -- -- -- Amortization of capitalized interest 234 8,771 4,386 12,240 1,047 1,226 310 Less: interest capitalized during year Bond discount amortization(a) -- -- Loan cost amortization 1,288 1,455 794 2,516 3,338 3,669 1,010 ------ -------- ------- -------- ------- ------- ------- Earnings 51,410 (151,554) (8,947) (837,515) 120,467 287,313 145,193 Interest expense 13,679 18,550 17,448 68,249 81,052 86,256 25,889 Capitalized interest 6,428 12,935 5,087 6,470 3,356 2,452 2,452 Preferred Stock Dividends Bond discount amortization(a) -- -- -- -- -- -- Loan cost amortization 1,288 1,455 794 2,516 3,338 3,669 1,010 ------ -------- ------- -------- ------- ------- ------- Fixed Charges 21,395 32,940 23,329 77,235 87,746 92,377 29,351 Ratio 2.4 (4.6) (0.4) (10.8) 1.4 3.1 4.9 (A) Bond discount excluded since its included in interest expense Insufficient coverage 0 184,494 32,275.5 914,750 0 0 0
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