EX-12 4 d95448ex12.txt RATIOS OF EARNINGS TO FIXED CHARGES EXHIBIT 12 CHESAPEAKE ENERGY CORPORATION RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS (IN 000'S)
Year Six Months Year Year Year Year Ended Ended Ended Ended Ended Ended June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 1997 1997 1998 1999 2000 2001 --------- ---------- --------- -------- -------- -------- Income before income taxes and extraordinary item (180,330) (31,574) (920,520) 35,030 196,162 438,365 Interest 18,550 17,448 68,249 81,052 86,256 98,321 Amortization of capitalized interest 8,772 4,386 12,240 1,047 1,226 1,784 Bond discount amortization (a) -- -- Loan cost amortization 1,455 794 2,516 3,338 3,669 4,022 --------- ---------- --------- -------- -------- -------- Earnings (151,553) (8,946) (837,515) 120,467 287,313 542,492 Interest expense 18,550 17,448 68,249 81,052 86,256 98,321 Capitalized interest 12,935 5,087 6,470 3,356 2,452 4,719 Preferred Stock Dividends -- Pref. Dividend Requirements -- -- 12,077 16,711 8,484 2,050 Ratio of income before provision for taxes to Net Income (b) -- -- N/A 1.05 N/A 1.66 --------- ---------- --------- -------- -------- -------- Subtotal - Preferred Dividends -- -- 12,077 17,597 8,484 3,411 Bond discount amortization (a) -- -- -- -- -- Loan cost amortization 1,455 794 2,516 3,338 3,669 4,022 --------- ---------- --------- -------- -------- -------- Combined Fixed Charges and Preferred Dividends 32,940 23,329 89,312 105,343 100,861 110,473 Ratio (4.6) (0.4) (9.4) 1.1 2.8 4.9 Insufficient coverage 184,493 32,275 926,827 -- -- --
(a) Bond discount excluded since it is included in interest expense. (b) Represents income (loss) before income taxes and extraordinary item divided by income (loss) before extraordinary item, which adjusts dividends on preferred stock to a pre-tax basis. Page 1