EX-12.1 7 d98397exv12w1.txt COMPUTATION OF RATIO OF EARNINGS AND FIXED CHARGES EXHIBIT 12.1 CHESAPEAKE ENERGY CORPORATION COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (IN 000'S)
Six Months Three Months Year Ended Ended Year Ended Year Ended Year Ended Year Ended Ended June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, March 31, 1997 1997 1998 1999 2000 2001 2002 ---------- ---------- ---------- ---------- ---------- ---------- ------------ RATIOS OF EARNINGS TO FIXED CHARGES Income before income taxes and extraordinary item (180,330) (31,574) (920,520) 35,030 196,162 438,365 (45,976) Interest 18,550 17,448 68,249 81,052 86,256 98,321 26,960 Amortization of capitalized interest 8,772 4,386 12,240 1,047 1,226 1,784 424 Bond discount amortization (a) -- -- -- -- -- -- -- Loan cost amortization 1,455 794 2,516 3,338 3,669 4,022 1,203 -------- -------- -------- -------- -------- -------- -------- Earnings (151,553) (8,946) (837,515) 120,467 287,313 542,492 (17,389) ======== ======== ======== ======== ======== ======== ======== Interest expense 18,550 17,448 68,249 81,052 86,256 98,321 26,960 Capitalized interest 12,935 5,087 6,470 3,356 2,452 4,719 1,130 Bond discount amortization (a) -- -- -- -- -- -- -- Loan cost amortization 1,455 794 2,516 3,338 3,669 4,022 1,203 -------- -------- -------- -------- -------- -------- -------- Fixed Charges 32,940 23,329 77,235 87,746 92,377 107,062 29,293 ======== ======== ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges (4.6) (0.4) (10.8) 1.4 3.1 5.1 (0.6) Insufficient coverage 184,493 32,275 914,750 -- -- -- 46,682
(a) Bond discount excluded since its included in interest expense.