EX-12 5 h79305exv12.htm EX-12 exv12
Exhibit 12
DENBURY RESOURCES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                 
    Year Ended December 31,     Nine Months Ended  
    2005     2006     2007     2008     2009     30-Sep-10  
    (amounts in thousands)  
Earnings:
                                                
Pretax income from continuing operations
     248,041       329,574       393,414       624,228       (122,189 )     460,370  
Plus: Equity in (earnings) loss of affiliates
     (314 )     (776 )     1,110       (5,354 )     (6,657 )     (587 )
Plus: Distributed income of equity investees
     528       925       1,427       7,139       11,642       —  
Plus: Amortization of capitalized interest
     —       53       169       1,420       2,427       3,236  
Plus: Fixed charges (below)
     21,059       37,533       55,917       67,576       122,795       184,838  
Less: Interest capitalized
     (1,649 )     (11,333 )     (20,385 )     (29,161 )     (68,596 )     (56,079 )
 
                                    
Earnings
     267,665       355,976       431,652       665,848       (60,578 )     591,778  
 
                                    
 
                                                
Fixed Charges:
                                                
Interest expense
     17,978       23,575       30,830       32,596       47,430       123,230  
Capitalized interest
     1,649       11,333       20,385       29,161       68,596       56,079  
Interest component of rent expense (1)
     1,432       2,625       4,702       5,819       6,769       5,529  
Imputed preferred dividend
     —       —       —       —       —       —  
Preferred dividend tax effect
     —       —       —       —       —       —  
 
                                    
Fixed charges
     21,059       37,533       55,917       67,576       122,795       184,838  
 
                                    
 
                                                
Ratio of earnings to fixed charges
     12.7       9.5       7.7       9.9       (0.5) (2)     3.2  
 
                                    
 
(1)   Represents that portion of rental expense that we believe to be representative of interest expense.
 
(2)   Earnings were inadequate to cover fixed charges by $183.4 million.