EX-12.1 2 v403910_ex12-1.htm EXHIBIT 12.1

EXHIBIT 12.1

EMERALD OIL, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Year Ended December 31,
	2010			2011			2012			2013			2014
Earnings
Net loss before income taxes	$	(4,268,569	)	$	(1,345,054	)	$	(62,296,099	)	$	(10,882,895	)	$	(52,145,225	)
Add: Income taxes		65,240			—			—			—			—
Add: Fixed charges		630,603			2,037,552			2,623,122			323,282			4,708,530
Total earnings		(3,572,726	)		692,498			(59,672,978	)		(10,559,613	)		(47,436,695	)

Fixed charges
Interest expense		629,026			2,036,032			2,614,240			287,934			4,675,475
Rental expense attributable to interest		1,577			1,520			8,882			35,348			33,055
Total fixed charges		630,603			2,037,552			2,623,122			323,282			4,708,530

Ratio of earnings to fixed charges		—	⁽²⁾		0.34			—	⁽²⁾		—	⁽²⁾		—	⁽²⁾

Deficiency ($)	$	4,203,329		$	1,345,054		$	62,296,099		$	10,882,895		$	52,145,225

Preferred stock dividends ⁽¹⁾		—			—			—			20,279,197			—

Ratio of earnings to fixed charges plus preferred stock dividends ⁽¹⁾		—			—			—			—	⁽²⁾		—

Deficiency ($)										$	31,162,092

(1)

For the purposes of determining the ratio of earnings to fixed charges and the ratio of earnings to fixed charges plus preferred stock dividends, earnings are defined as net income before income taxes, amortization of capitalized interest, rent expense, and interest expense. Fixed charges consist of interest expense and rent expense attributable to interest. Preferred stock dividends are dividends paid on our Series A Perpetual Preferred Stock issued on February 19, 2013, the remaining shares of which were redeemed in full on October 15, 2013. Earnings were insufficient to cover the fixed charges plus preferred stock dividends by approximately $31.1 million for the year ended December 31, 2013.

(2)	Earnings were insufficient to cover fixed charges.