EX-12.1 4 a17-3918_4ex12d1.htm EX-12.1

Exhibit 12.1

 

Summit Midstream Partners, LP

Ratio of Earnings to Fixed Charges

 

 

 

Nine months
ended

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

Year ended December 31,

 

 

 

2016

 

2015 (1)

 

2014 (2)

 

2013

 

2012

 

2011

 

 

 

(Dollars in thousands)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes before adjustment for income or loss from equity method investees

 

$

(20,700

)

$

(216,268

)

$

(29,802

)

$

47,737

 

$

43,679

 

$

38,646

 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

51,488

 

63,262

 

53,859

 

28,543

 

15,794

 

6,579

 

Distributions from equity method investees

 

34,139

 

34,641

 

2,992

 

—

 

—

 

—

 

Capitalized interest

 

(3,133

)

(3,372

)

(4,646

)

(6,690

)

(2,784

)

(3,362

)

Total earnings

 

$

61,794

 

$

(121,737

)

$

22,403

 

$

69,590

 

$

56,689

 

$

41,863

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

47,650

 

$

59,092

 

$

48,586

 

$

21,314

 

$

12,766

 

$

3,054

 

Capitalized interest

 

3,133

 

3,372

 

4,646

 

6,690

 

2,784

 

3,362

 

Estimate of interest within rent expense

 

705

 

798

 

627

 

539

 

244

 

163

 

Total fixed charges

 

$

51,488

 

$

63,262

 

$

53,859

 

$

28,543

 

$

15,794

 

$

6,579

 

Ratio of earnings to fixed charges

 

1.20x

 

—

 

0.42x

 

2.44x

 

3.59x

 

6.36x

 

 

(1)           The ratio of earnings to fixed charges was negative for the year ended December 31, 2015. To achieve a ratio of earnings to fixed charges of 1:1, we would have had to generate an additional $185.0 million of earnings for the year ended December 31, 2015. Loss before income taxes for the year ended December 31, 2015 included $248.9 million of goodwill impairments.

 

(2)           The ratio of earnings to fixed charges was less than 1:1 for the year ended December 31, 2014. To achieve a ratio of earnings to fixed charges of 1:1, we would have had to generate an additional $31.5 million of earnings for the year ended December 31, 2014. Loss before income taxes for the year ended December 31, 2014 included a goodwill impairment of $54.2 million.