<PAGE>
<TABLE>
P & L COAL HOLDINGS CORPORATION
Ratio of Earnings to Fixed Charges
(in thousands)
<CAPTION>
Fiscal Year
Year Total Period Period Fiscal Six Months Ended September 30,
Ended Fiscal Ended Ended Year Ended Ended -----------------------
March 31, 2000 1999 March 1999 May 19, 1998 March 1998 March 1997 1996 1995
-------------- ---------- ---------- ------------ ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Income (Loss) Before Income Taxes
and Minority Interests $ (7,398) $ 15,436 $ 8,666 $ 6,770 $ 260,812 $ 85,985 $ (702,467) $ 192,739
Interest Expense 205,056 180,327 176,105 4,222 33,410 24,700 62,526 58,355
Interest Portion of Rental Expense 19,025 19,838 17,318 2,520 18,910 8,002 17,069 14,981
-------------- ---------- ---------- ------------ ---------- ---------- ----------- -----------
Adjusted Earnings (Loss) $ 216,683 $ 215,601 $ 202,089 $ 13,512 $ 313,132 $ 118,687 $(622,872) $ 266,075
============== ========== ========== ============ ========== ========== =========== ===========
Interest Expense $ 205,056 $ 180,327 $ 176,105 $ 4,222 $ 33,410 $ 24,700 $ 62,526 $ 58,355
Interest Portion of Rental Expense 19,025 19,838 17,318 2,520 18,910 8,002 17,069 14,981
-------------- ---------- ---------- ------------ ---------- ---------- ----------- -----------
Adjusted fixed charges $ 224,081 $ 200,165 $ 193,423 $ 6,742 $ 52,320 $ 32,702 $ 79,595 $ 73,336
============== ========== ========== ============ ========== ========== =========== ===========
Ratio of Earnings to Fixed Charges 0.97 1.08 1.04 2.00 5.98 3.63 --- 3.63
============== ========== ========== ============ ========== ========== =========== ===========
</TABLE>
