EXHIBIT 12
Unit Corporation
Computation of Ratio of Earnings to Fixed Charges
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 60,170 | $ | (206,818 | ) | $ | (1,664,309 | ) | $ | 222,939 | $ | 301,469 | ||||||||
(Income) loss from equity investments | — | — | (18 | ) | 133 | 238 | ||||||||||||||
Distribution from equity investments | — | — | — | 303 | 144 | |||||||||||||||
Interest expense | 37,763 | 39,295 | 31,464 | 16,904 | 14,578 | |||||||||||||||
Amortization of capitalized interest | 4,673 | (3) | 10,695 | (3) | 38,695 | (3) | 5,454 | 3,080 | ||||||||||||
Amortization of bond discount | 571 | 534 | 499 | 467 | 437 | |||||||||||||||
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Earnings (loss) | $ | 103,177 | $ | (156,294 | ) | $ | (1,593,669 | ) | $ | 246,200 | $ | 319,946 | ||||||||
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Fixed charges(1): | ||||||||||||||||||||
Interest expense | $ | 37,763 | $ | 39,295 | $ | 31,464 | $ | 16,904 | $ | 14,578 | ||||||||||
Capitalized interest | 15,948 | 15,293 | 21,711 | 32,246 | 33,670 | |||||||||||||||
Amortization of bond discount | 571 | 534 | 499 | 467 | 437 | |||||||||||||||
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Total fixed charges | $ | 54,282 | $ | 55,122 | $ | 53,674 | $ | 49,617 | $ | 48,685 | ||||||||||
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Ratio of earnings to fixed charges(2) | 1.9x | (4) | — | (4) | — | 5.0x | 6.6x | |||||||||||||
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(1) | Fixed charges are determined as defined in instructions for Item 503 of Regulation S-K of the Securities Act |
(2) | There were no shares of preferred stock outstanding during any of the time periods indicated in the table. |
(3) | Amortization of capitalized interest includes the proportionate amount related to the ceiling test write-down. |
(4) | Earnings for the years 2016 and 2015 were insufficient to cover fixed charges by $0.2 million and $1.7 billion, respectively. |
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