EX-12.1 3 a2206274zex-12_1.htm EX-12.1

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. For purposes of computing the ratios of earnings to fixed charges, earnings consist of income (loss) from continuing operations before adjustment for equity income from equity method investees, and our share of pretax losses of investees for which charges arising from guarantees are included in fixed charges, each as accounted for under the equity method, less capitalized interest, preference security dividend requirements of consolidated subsidiaries, and the non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges. Fixed charges consist of the sum of interest expensed and capitalized, plus amortized premiums, discounts and capitalized expenses related to indebtedness, an estimated interest component of rental expense, and preference security dividend requirments of consolidated subsidiaries.

 
  Eagle Rock Energy Partners, L.P.  
 
  Years Ended December 31,   Nine Months
Ended
September 30.
2011
 
 
  2006   2007   2008   2009   2010  

Interest expense

    30,873     45,513     39,056     41,535     35,118     32,966  

Capitalized interest

    457     1,433     391     61     416     203  

Estimated interest associated with rental expense(1)

    100     1,200     1,933     2,966     2,600     2,033  
                           

Total fixed charges

    31,430     48,146     41,380     44,562     38,134     35,202  
                           

Net income (loss) from continuing operations before income taxes

    (22,084 )   (147,717 )   48,861     (179,846 )   (25,196 )   96,699  

Income from equity investees

                  (153 )   20     12  
                           

Net income (loss) from continuing operations before income taxes before income from equity investees

    (22,084 )   (147,717 )   48,861     (179,999 )   (25,176 )   96,711  

Distributed income of equity investees

                  164     67     55  

Capitalized interest

    (457 )   (1,433 )   (391 )   (61 )   (416 )   (203 )

Depreciation of capitalized interest

    11     59     104     116     128     107  

Fixed chages

    31,430     48,146     41,380     44,562     38,134     35,202  
                           

Total earnings

    8,900     (100,945 )   89,954     (135,218 )   12,736     131,872  
                           

Ratio of earnings to fixed charges(2)

            2.17             3.75  
                           

(1)
Calculated as one third of rent expense, which is a reasonable approximation of the interest factor.

(2)
For the years ended December 31, 2006, 2007, 2009 and 2010, earnings were inadequate to cover fixed charges by $22.5 million, $149.1 million, $179.8 million and $25.4 million, respectively.