EX-12 2 chk-ex_12x20170930x10q.htm RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES Exhibit

 
 
EXHIBIT 12


CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS
 
 
 
Years Ended
December 31,
 
Nine Months
Ended
September 30,
 
 
2012
 
2013
 
2014
 
2015
 
2016
 
2017
EARNINGS (LOSS):
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes and cumulative effect of accounting change
 
$
(974
)
 
$
1,442

 
$
3,200

 
$
(19,098
)
 
$
(4,589
)
 
$
621

Interest expense(a)
 
142

 
207

 
172

 
322

 
275

 
298

Loss on investment in equity investees in excess of distributed earnings
 
108

 
219

 
75

 
96

 
8

 

Amortization of capitalized interest
 
402

 
440

 
438

 
483

 
729

 
351

Loan cost amortization
 
43

 
37

 
32

 
31

 
24

 
18

Earnings (Loss)
 
$
(279
)
 
$
2,345

 
$
3,917

 
$
(18,166
)
 
$
(3,553
)
 
$
1,288

FIXED CHARGES:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
142

 
$
207

 
$
172

 
$
322

 
$
275

 
$
298

Capitalized interest
 
976

 
815

 
604

 
410

 
242

 
147

Loan cost amortization
 
43

 
37

 
32

 
31

 
24

 
18

Fixed Charges
 
$
1,161

 
$
1,059

 
$
808

 
$
763

 
$
541

 
$
463

PREFERRED STOCK DIVIDENDS:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred dividend requirements
 
$
171

 
$
171

 
$
171

 
$
171

 
$
97

 
$
62

Ratio of income (loss) before provision for taxes to net income (loss)(b)
 
1.64

 
1.61

 
1.56

 
1.30

 
1.04

 
1.00

Preferred Dividends
 
$
280

 
$
275

 
$
266

 
$
222

 
$
101

 
$
62

COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
 
$
1,441

 
$
1,334

 
$
1,074

 
$
985

 
$
642

 
$
525

RATIO OF EARNINGS TO FIXED CHARGES
 
(0.2
)
 
2.2

 
4.8

 
(23.8
)
 
(6.6
)
 
2.8

INSUFFICIENT COVERAGE
 
$
1,440

 
$

 
$

 
$
18,929

 
$
4,094

 
$

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
 
(0.2
)
 
1.8

 
3.6

 
(18.4
)
 
(5.5
)
 
2.5

INSUFFICIENT COVERAGE
 
$
1,720

 
$

 
$

 
$
19,151

 
$
4,195

 
$

___________________________________________ 
(a)
Excludes the effect of unrealized gains or losses on interest rate derivatives and includes amortization of bond discount.
(b)
Amounts of income (loss) before provision for taxes and of net income (loss) exclude the cumulative effect of accounting change.