EX-12.1 2 h47579exv12w1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

EXHIBIT 12.1
Stone Energy Corporation
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands of dollars)
                                                         
    Three Months Ended        
    March 31,     Year Ended December 31,  
    2007     2006     2006     2005     2004     2003     2002  
 
                                                        
Net income (loss)
   $ 10,476     $ 24,008       ($254,222 )   $ 136,764     $ 119,668     $ 121,093     $ 45,803  
Income tax provision
     5,757       13,017       (138,306 )     76,446       64,436       65,203       24,662  
 
                                          
 
     16,233       37,025       (392,528 )     213,210       184,104       186,296       70,465  
 
                                                        
Fixed charges included in earnings:
                                                        
Interest expense
     11,191       5,915       35,931       23,151       16,835       19,860       23,141  
Amortization of debt-related expenses
     260       163       812       646       664       706       692  
 
                                          
Total Earnings
     27,684       43,103       (355,785 )     237,007       201,603       206,862       94,298  
 
                                          
 
                                                        
Fixed charges:
                                                        
Fixed charges included in earnings
     11,451       6,078       36,743       23,797       17,499       20,566       23,833  
Capitalized interest
     4,332       4,289       18,221       14,877       6,957       7,848       8,519  
 
                                          
Total fixed charges
     15,783       10,367       54,964       38,674       24,456       28,414       32,352  
 
                                          
 
                                                        
Ratio of earnings to fixed charges
     1.8x       4.2x       (A )     6.1x       8.2x       7.3x       2.9x  
 
                                                        
(A)   As a result of low oil and gas prices as of December 31, 2006, we recorded a $510,013 pre-tax ceiling test write-down in accordance with the full cost method of accounting for oil and gas properties. The write-down resulted in an earnings to fixed charges deficiency in the amount of $410,749 for the year ended December 31, 2006.