EX-12.1 6 a2218798zex-12_1.htm EX-12.1

Exhibit 12.1

 

MIDSTATES PETROLEUM COMPANY, INC.

RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS

(In thousands, except ratios)

 

 

 

Year Ended December 31,

 

 

 

2013

 

2012

 

2011

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings available before fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss)

 

(490,514

)

7,789

 

16,657

 

(15,635

)

(11,752

)

Add: Fixed charges

 

115,881

 

24,755

 

5,723

 

2,114

 

981

 

Total additive items

 

(374,633

)

32,544

 

22,380

 

(13,521

)

(10,771

)

 

 

 

 

 

 

 

 

 

 

 

 

Less: Capitalized interest

 

(32,245

)

(11,175

)

(2,600

)

(1,654

)

(830

)

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings available for fixed charges

 

$

(406,878

)

$

21,369

 

$

19,780

 

$

(15,175

)

$

(11,601

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed

 

$

77,179

 

$

11,711

 

$

2,094

 

$

—

 

$

—

 

Interest capitalized

 

32,245

 

11,175

 

2,600

 

1,654

 

830

 

Amortized premiums, discounts and capitalized expenses related to indebtedness

 

5,960

 

1,529

 

850

 

314

 

41

 

Portion of rental expense which represents interest factor (1)

 

497

 

340

 

179

 

146

 

110

 

Total Fixed Charges

 

$

115,881

 

$

24,755

 

$

5,723

 

$

2,114

 

$

981

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

(b)

 

(c)

3.5

 

 

(d)

 

(e)

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

115,881

 

$

24,755

 

$

5,723

 

$

2,114

 

$

981

 

Pre-tax preferred dividends (a)

 

22,230

 

10,844

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges plus preferred dividends

 

$

138,111

 

$

35,599

 

$

5,723

 

$

2,114

 

$

981

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred dividends

 

 

(b)

 

(c)

3.5

 

 

(d)

 

(e)

 

(a)    Prior to October 1, 2012, the Company did not have any preferred stock outstanding.  Preferred dividends shown herein relate to the Company’s Series A Mandatorily Convertible Preferred Stock (“Series A Preferred Stock”) issued on October 1, 2012, which allows, at the Company’s option, for the 8% annual dividend payment to be made either in cash or through an adjustment to the Series A Preferred Stock liquidation preference.  Pre-tax preferred stock dividend amounts for the three months ended March 31, 2013 and the year ended December 31, 2012 were calculated utilizing the Company’s effective tax rate for the applicable periods (39.5% for March 31, 2013 and 40.1% for the year ended December 31, 2012) and represent the notional dividend amount as though paid in cash,  rather than through an adjustment to the Series A Preferred Stock liquidation preference.

(b)    Earnings for the year ended December 31, 2013 were inadequate to cover fixed charges and combined fixed charges and preferred dividends.  The coverage deficiency was $522.8 million and $545.0 million, respectively.

(c)     Earnings for the year ended December 31, 2012 were inadequate to cover fixed chargesand combined fixed charges and preferred dividends.  The coverage deficiency was $3.4 million and $14.2 million, respectively.

(d)    Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges and combined fixed charges and preferred dividends.  The coverage deficiency was $17.3 million and $17.3 million, respectively.

(e)     Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges and combined fixed charges and preferred dividends.  The coverage deficiency was $12.6 million and $12.6 million, respectively.