EX-12.1 5 h68944exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
 
RATIO OF EARNINGS TO FIXED CHARGES
 
The table below sets forth the Ratios of Earnings to Fixed Charges for us for the periods indicated. On October 26, 2006, we completed our initial public offering whereby we became the successor to the business of Eagle Rock Pipeline, L.P. As such, the years ended December 31, 2004 and 2005 reflect the financial results of Eagle Rock Pipeline, L.P. and the years ended December 31, 2007 and 2008 and the nine months ended September 30, 2009, reflect the financial results of Eagle Rock Energy Partners, L.P.
 
                                                 
    Predecessor     Successor  
          Nine Months
 		 
          Ended
 		 
    Year Ended December 31,     Sept. 30,  
    2004     2005     2006     2007     2008     2009  
 
Interest expense
  $       $ 3,878     $ 29,759     $ 37,521     $ 38,098     $ 30,951  
Amortization of debt issuance costs
            76       1,114       1,777       958       801  
Write-off of debt issuance costs
                            6,215                  
Estimated interest associated with rental expense(1)
    12       167       100       1,200       1,933       2,000  
                                                 
Total fixed charges
  $ 12     $ 4,121     $ 30,973     $ 46,713     $ 40,989     $ 33,752  
                                                 
Net income (loss) from continuing operations before income taxes
  $ (1,210 )   $ 2,750     $ (22,084 )   $ (145,465 )   $ 86,404     $ (101,235 )
Income from equity investees
                            714       4,021       988  
                                                 
Net income (loss) from continuing operations before income taxes before income from equity investees
    (1,210 )     2,750       (22,084 )     (146,179 )     82,383       (102,223 )
Distributed income of equity investees
                            408       3,643       247  
Fixed charges
    12       4,121       30,973       46,713       40,989       33,752  
                                                 
Total earnings
  $ (1,198 )   $ 6,871     $ 8,889     $ (99,058 )   $ 127,015     $ (68,224 )
                                                 
Ratio of earnings to fixed charges(2)
    —       1.67 x     0.29 x     —       3.10 x     —  
                                                 
 
 
(1) Calculated as one third of rent expense, which is a reasonable approximation of the interest factor.
 
(2) For the years ended December 31, 2004, 2006 and 2007 and for the nine months ended September 30, 2009, earnings were inadequate to cover fixed charges by $1.21 million, $22.08 million, $145.77 million and $101.98 million, respectively.