EX-12 5 d470925dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

 

DENBURY RESOURCES INC.  
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES  
      Year Ended December 31,     Nine
Months Ended
September 30, 2012		  
In thousands    2007     2008     2009     2010     2011    

Earnings:

             

Pretax income from continuing operations

      393,414       624,228       (122,189 )      479,070       924,045       661,492  

Plus: Equity in (earnings) loss of affiliates

      1,110       (5,354 )      (6,657 )      (587 )      —          —     

Plus: Distributed income of equity investees

      1,427       7,139       11,642       —          —          —     

Plus: Amortization of capitalized interest

      169       1,420       2,427       4,865       5,271       4,780  

Plus: Fixed charges (below)

      55,917       67,576       122,795       250,964       236,552       177,748  

Less: Interest capitalized

      (20,385 )      (29,161 )      (68,596 )      (66,815 )      (61,586 )      (57,357 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

      431,652       665,848       (60,578 )      667,497       1,104,282       786,663  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

             

Interest expense

      30,830       32,596       47,430       176,113       164,360       115,745  

Capitalized interest

      20,385       29,161       68,596       66,815       61,586       57,357  

Interest component of rent expense (1)

      4,702       5,819       6,769       8,036       10,606       4,646  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

      55,917       67,576       122,795       250,964       236,552       177,748  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      7.7       9.9       (0.5 )(2)      2.7       4.7       4.4  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(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.