EX-12.1 3 d41491dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

CONCHO RESOURCES INC.

STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND

EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

    

Six Months
Ended

June 30,

     Years Ended December 31,  

(in thousands, except ratios)

    2015     2014      2013      2012      2011      2010  

Income (loss) from continuing operations before income taxes

    $ (179,529 )    $ 855,960       $ 357,159       $ 659,271       $ 681,334       $ 249,039   

Interest expense

      107,051        216,661         218,581         182,705         118,360         60,087   

Rental expense attributable to interest

      1,282        2,406         1,906         1,553         1,193         932   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Earnings

    $ (71,196 )    $ 1,075,027       $ 577,646       $ 843,529       $ 800,887       $ 310,058   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense

    $ 107,051      $ 216,661       $ 218,581       $ 182,705       $ 118,360       $ 60,087   

Capitalized interest

      2,389        2,282         —           —           73         184   

Rental expense attributable to interest

      1,282        2,406         1,906         1,553         1,193         932   

Preferred stock dividends

      —          —           —           —           —           —     
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges and preferred stock dividends

    $ 110,722      $ 221,349       $ 220,487       $ 184,258       $ 119,626       $ 61,203   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges (a)

      (0.64 )      4.86         2.62         4.58         6.69         5.07   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Insufficient coverage

    $ (181,918 )    $ —         $ —         $ —         $ —         $ —     
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges and preferred stock dividends (b)

      (0.64 )      4.86         2.62         4.58         6.69         5.07   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Insufficient coverage

    $ (181,918 )    $ —         $ —         $ —         $ —         $ —     
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) The ratio has been computed by dividing earnings by fixed charges. For purposes of computing the ratio:

 

  •   earnings include income (loss) from continuing operations before income taxes, adjusted for interest expense and the portion of rental expense deemed to be representative of the interest component of rental expense; and

 

  •   fixed charges consist of interest expense, capitalized interest and the portion of rental expense deemed to be representative of the interest component of rental expense.

 

(b) The ratio has been computed by dividing earnings by fixed charges and preferred stock dividends. For purposes of computing the ratio:

 

  •   earnings include income (loss) from continuing operations before income taxes, adjusted for interest expense and the portion of rental expense deemed to be representative of the interest component of rental expense; and

 

  •   fixed charges and preferred stock dividends consist of interest expense, capitalized interest, the portion of rental expense deemed to be representative of the interest component of rental expense and preferred stock dividends.