EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

SandRidge Energy, Inc.

Computation of Ratio of Earnings to Fixed Charges

 

     Six Months Ended June 30,     Year Ended December 31,
     2010     2009     2009     2008     2007     2006     2005
     (dollars in thousands)

Fixed Charges:

              

Interest expense(a)

   $ 118,009 (a)    $ 86,825 (a)    $ 185,137 (b)    $ 138,282 (b)    $ 117,185      $ 16,904      $ 5,277

Interest component of rent

     351        249        1,052        800        767        367        367

Capitalized interest

     —          —          —          365        1,987        1,378        —  
                                                      

Total

     118,450        87,074      $ 187,189      $ 139,447      $ 119,939      $ 18,649      $ 5,644
                                                      

Earnings:

              

Pretax income from continuing operations(c)

     80,914        (1,247,999   $ (1,785,326   $ (1,481,006   $ 75,373      $ 20,890      $ 28,245

Fixed charges

     118,450        87,074        187,189        139,447        119,939        18,649        5,644

Less: interest capitalized in current period

     —          —          —          (365     (1,987     (1,378     —  

Add: previously capitalized interest

     111        111             

         amortized in current period

         222        481        197        —          —  
                                                      

Total

   $ 199,475        (1,160,814   $ (1,597,915   $ (1,341,443   $ 193,522      $ 38,161      $ 33,889
                                                      

Ratio of Earnings to Fixed Charges

     1.7        —          —          —          1.6        2.0        6.0

Insufficient coverage

     —          1,247,888      $ 1,785,104      $ 1,480,890      $ —        $ —        $ —  

 

(a) Interest expense for the six months ended June 30, 2010 and 2009 excludes the effects of $8.2 million and ($3.7) million unrealized loss (gain), respectively, on interest rate swaps.

 

(b) Interest expense for the years ended December 31, 2009 and 2008 excludes the effects of $(0.4) million and $8.7 million unrealized loss (gain), respectively, on interest rate swaps.

 

(c) Excludes undistributed income from equity investees.