EX-12.1 4 v421452_ex12-1.htm EXHIBIT 12.1

 

Exhibit 12.1

 

RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
ENERGY XXI LTD

 

For purposes of computing the ratio of earnings to fixed charges, earnings (loss) is defined as pre-tax income (loss) before loss from equity investees plus fixed charges. Fixed charges consist of interest expense and amortization of deferred financing fees.

 

   Year Ended June 30, 
   2015   2014
(Restated)		   2013
(Restated)		   2012
(Restated)		   2011
(Restated)		 
   (Dollars in Thousands) (Unaudited) 
Earnings:                         
Pre-tax income (loss) before loss from equity investees  $(3,030,223)  $58,376   $219,387   $585,347   $(52,141)
Fixed Charges   323,308    162,728    108,659    108,882    106,479 
Total Earnings (loss)   (2,692,357)   254,791    342,071    710,156    70,957 
Fixed Charges:                         
Interest expense  $300,061   $149,795   $101,761   $101,323   $95,778 
Deferred financing fees   23,247    12,933    6,898    7,559    10,701 
Total Fixed Charges  $323,308   $162,728   $108,659   $108,882   $106,479 
Ratio of Earnings (Loss) to Fixed Charges(1)   —    1.36x   3.02x   6.38x   0.51x

 

 

(1) For the year ended June 30, 2015, earnings were inadequate to cover fixed charges and therefore the ratio has not been presented for this period. The coverage deficiency necessary for the ratio of earnings (loss) to fixed charges to equal 1.00x was approximately $3,030.2 million.

 

RATIO OF EARNINGS (LOSS) TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS

ENERGY XXI LTD

 

For purposes of computing the ratio of earnings to combined fixed charges and preference dividends, earnings (loss) is defined as pre-tax income (loss) before loss from equity investees plus fixed charges less preference dividends. Fixed charges consist of interest expense, amortization of deferred financing fees and preference dividends.

 

   Year Ended June 30, 
   2015   2014
(Restated)		   2013
(Restated)		   2012
(Restated)		   2011
(Restated)		 
   (Dollars in Thousands) (Unaudited) 
Earnings:                         
Pre-tax income (loss) before loss from equity investees  $(3,030,223)  $58,376   $219,387   $585,347   $(52,141)
Fixed Charges   337,666    196,415    122,684    124,809    123,098 
    (2,692,357)   254,791    342,071    710,156    70,957 
Less: Preference security dividend requirement   (14,358)   (33,687)   (14,025)   (15,927)   (16,619)
Total Earnings (loss)  $(2,706,715)  $221,104   $328,046   $694,229   $54,338 
Fixed Charges:                         
Interest expense  $300,061   $149,795   $101,761   $101,323   $95,778 
Preference security dividend requirement   14,358    33,687    14,025    15,927    16,619 
Deferred financing fees   23,247    12,933    6,898    7,559    10,701 
Total Fixed Charges  $337,666   $196,415   $122,684   $124,809   $123,098 
Ratio of Earnings (Loss) to Combined Fixed Charges and Preference Dividends(1)   —    1.13x   2.67x   5.56x   0.44x

 

 

(1) For the year ended June 30, 2015, earnings were inadequate to cover fixed charges and therefore the ratio has not been presented for this period. The coverage deficiency necessary for the ratio of earnings (loss) to combined fixed charges and preference dividends to equal 1.00x was approximately $3,044.4 million.

 

The ratios of earnings (loss) to fixed charges and earnings (loss) to combined fixed charges and preference dividends for the fiscal years ended June 30, 2014, 2013, 2012, and 2011 were calculated based upon the restated financial statements reflected in the Annual Report on Form 10-K for the year ended June 30, 2015, which is incorporated by reference in this Prospectus.