Exhibit 12

CHESAPEAKE ENERGY CORPORATION

RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS

(dollars in 000’s)

	Year Ended December 31, 1999		Year Ended December 31, 2000		Year Ended December 31, 2001		Year Ended December 31, 2002		Year Ended December 31, 2003		Six Months Ended June 30, 2004
EARNINGS:
Income before income taxes and cumulative effect of accounting change	$	35,030	$	196,162	$	361,698	$	67,140	$	500,952	$	327,726
Interest expense (a)		81,052		86,256		98,321		111,280		147,817		75,672
(Gain)/loss on investment in equity investees		—		—		—		—		409		(1,017	)
Amortization of capitalized interest		1,047		1,226		1,784		1,804		2,519		1,908
Bond discount amortization (c)		—		—		—		—		—		—
Loan cost amortization		3,338		3,669		4,022		4,962		4,254		2,390
Earnings	$	120,467	$	287,313	$	465,825	$	185,186	$	655,951	$	406,679
FIXED CHARGES:
Interest expense	$	81,052	$	86,256	$	98,321	$	111,280	$	147,817	$	75,672
Capitalized interest		3,356		2,452		4,719		4,976		13,041		12,660
Bond discount amortization (c)		—		—		—		—		—		—
Loan cost amortization		3,338		3,669		4,022		4,962		4,254		2,390
Fixed Charges	$	87,746	$	92,377	$	107,062	$	121,218	$	165,112	$	90,722
Preferred Stock Dividends
Preferred Dividend Requirements	$	16,711	$	8,484	$	2,050	$	10,117	$	22,469	$	19,512
Ratio of income before provision for taxes to net income (b)		1.05		N/A		1.66		1.67		1.61		1.56
Subtotal – Preferred Dividends	$	17,597	$	8,484	$	3,411	$	16,861	$	36,240	$	30,439
Combined Fixed Charges and Preferred Dividends	$	105,343	$	100,861	$	110,473	$	138,079	$	201,352	$	121,161
Ratio of Earnings to Fixed Charges		1.4		3.1		4.4		1.5		4.0		4.5
Insufficient coverage	$	—	$	—	$	—	$	—	$	—	$	—
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends		1.1		2.8		4.2		1.3		3.3		3.4
Insufficient coverage	$	—	$	—	$	—	$	—	$	—	$	—

(a) Excludes the effect on unrealized gains or losses on interest rate derivatives.

(b) Amounts of income before provision for taxes and of net income exclude the cumulative effect of accounting change.

(c) Amortization of bond discount is excluded since it is included in interest expense.