EX-12.1 4 a2211904zex-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. 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,

 

 

 

2007

 

2008

 

2009

 

2010

 

2011

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

45,513

 

39,056

 

41,535

 

35,118

 

46,643

 

43,665

 

Capitalized interest

 

1,433

 

391

 

61

 

416

 

451

 

987

 

Estimated interest associated with rental expense (1)

 

1,200

 

1,933

 

2,966

 

2,600

 

2,596

 

2,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

48,146

 

41,380

 

44,562

 

38,134

 

49,690

 

46,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations before income taxes

 

(147,717

)

48,861

 

(179,846

)

(25,196

)

70,424

 

(95,439

)

Income from equity investees

 

 

 

(153

)

20

 

11

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(147,717

)

48,861

 

(179,999

)

(25,176

)

70,435

 

(95,431

)

Distributed income of equity investees

 

 

 

164

 

67

 

86

 

46

 

Capitalized interest

 

(1,433

)

(391

)

(61

)

(416

)

(451

)

(987

)

Depreciation of capitalized interest

 

59

 

104

 

116

 

128

 

149

 

139

 

Fixed chages

 

48,146

 

41,380

 

44,562

 

38,134

 

49,690

 

46,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings

 

(100,945

)

89,954

 

(135,218

)

12,736

 

119,910

 

(49,448

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (2)

 

 

2.17

 

 

0.33

 

2.41

 

(1.06

)

 


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

 

(2) For the years ended December 31, 2007, 2009 and 2010, and the nine months ended September 30, 2012, earnings were inadequate to cover fixed charges by $149.1 million, $179.8 million, $25.4 million and $96.2 million, respectively.