EX-12.1 4 d234441dex121.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

 

     For the Six Months Ended                                
     June 30,     Year Ended December 31,  
     2011     2010     2010     2009     2008     2007     2006  
     (dollars in thousands)  

Fixed Charges:

              

Interest expense

   $ 122,576 (a)    $ 118,099 (a)    $ 239,343 (b)    $ 186,137 (b)    $ 138,282 (b)    $ 117,185      $ 16,904   

Interest component of rent (c)

     199        351        872        1,052        800        767        367   

Capitalized interest

     784        —          1,265        —          365        1,987        1,378   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 123,559      $ 118,450      $ 241,480      $ 187,189      $ 139,447      $ 119,939      $ 18,649   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings:

              

Pretax (loss) income from continuing operations (d)

   $ (99,295   $ 80,914      $ (256,115   $ (1,785,326   $ (1,481,006   $ 75,373      $ 20,890   

Fixed charges

     123,559        118,450        241,480        187,189        139,447        119,939        18,649   

Less: interest capitalized in current period

     (784     —          (1,265     —          (365     (1,987     (1,378

Add: previously capitalized interest amortized in current period

     156        111        246        222        481        197        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 23,636      $ 199,475      $ (15,653   $ (1,597,915   $ (1,341,443   $ 193,522      $ 38,161   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of Earnings to Fixed Charges

     —          1.7        —          —          —          1.6        2.0   

Insufficient coverage

   $ 99,923      $ —        $ 257,134      $ 1,785,104      $ 1,480,890      $ —        $ —     

 

(a) Interest expense for the six month periods ended June 30, 2011 and 2010 exclude the effects of $4.4 million and $8.2 million unrealized losses, respectively, on interest rate swaps.
(b) Interest expense for the years ended December 31, 2010, 2009 and 2008 excludes the effect of $8.4 million, $(0.4) million and $8.7 million unrealized loss (gain), respectively, on interest rate swaps.
(c) Represents a reasonable approximation of the interest factor.
(d) Excludes undistributed income from equity investees.