Exhibit 12.1
W&T OFFSHORE, INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
EARNINGS (LOSS) TO COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDENDS
(In thousands, except ratios)
| Year Ended December 31, | ||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
| Income (loss) before income taxes |
$ | (828,482 | ) | $ | 215,759 | $ | 306,354 | $ | 290,026 | $ | 229,490 | |||||||
| Add: Fixed charges |
56,961 | 66,006 | 32,891 | 2,967 | 3,581 | |||||||||||||
| Less: Capitalized interest |
(19,292 | ) | (25,100 | ) | (13,238 | ) | — | — | ||||||||||
| Earnings (loss) before fixed charges |
$ | (790,813 | ) | $ | 256,665 | $ | 326,007 | $ | 292,993 | $ | 233,071 | |||||||
| Fixed charges: |
||||||||||||||||||
| Interest expense, net of amounts capitalized |
$ | 34,709 | $ | 37,088 | $ | 17,180 | $ | 1,145 | $ | 2,118 | ||||||||
| Capitalized interest |
19,292 | 25,100 | 13,238 | — | — | |||||||||||||
| Portion of rental expense representative of an interest factor |
2,960 | 3,818 | 2,473 | 1,822 | 1,463 | |||||||||||||
| Total fixed charges |
56,961 | 66,006 | 32,891 | 2,967 | 3,581 | |||||||||||||
| Preferred stock dividends (1) |
— | — | — | — | 1,385 | |||||||||||||
| Combined fixed charges and preferred stock dividends |
$ | 56,961 | $ | 66,006 | $ | 32,891 | $ | 2,967 | $ | 4,966 | ||||||||
| Ratio of earnings (loss) to fixed charges |
— | 3.9 | 9.9 | 98.8 | 65.1 | |||||||||||||
| Ratio of earnings (loss) to combined fixed charges and preferred stock dividends |
— | 3.9 | 9.9 | 98.8 | 46.9 | |||||||||||||
| (1) | Preferred stock dividends are adjusted to reflect the amount of pre-tax earnings required for payment. In connection with our initial public offering in January 2005, all outstanding shares of our preferred stock were converted into our common stock. |
| (2) | In 2008, earnings were insufficient to cover fixed charges by $847.8 million and therefore no ratio is shown. |