EX-12.1 4 d472314dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Summit Midstream Partners, LP

Ratio of Earnings to Fixed Charges

 

    Nine months ended
September 30,

2017(1)
    Year ended December 31,  
      2016     2015(2)     2014(3)     2013     2012  
    (Dollars in thousands)  

Earnings:

           

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

  $ 108,408     $ (7,768   $     (216,268   $     (29,802   $     47,737     $     43,679  

Add (deduct):

           

Fixed charges

    54,382       68,473       63,262       53,859       28,543       15,794  

Distributions from equity method investees

    28,715       44,991       34,641       2,992              

Capitalized interest

    (1,562     (3,709     (3,372     (4,646     (6,690     (2,784
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings

  $     189,943     $     101,987     $ (121,737   $ 22,403     $ 69,590     $ 56,689  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed Charges (4):

           

Interest expense

  $ 51,883     $ 63,810     $ 59,092     $ 48,586     $ 21,314     $ 12,766  

Capitalized interest

    1,562       3,709       3,372       4,646       6,690       2,784  

Estimate of interest within rent expense

    937       954       798       627       539       244  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

  $ 54,382     $ 68,473     $ 63,262     $ 53,859     $ 28,543     $ 15,794  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

    3.49x       1.49x             0.42x       2.44x       3.59x  

 

 

(1) The ratio of earnings to fixed charges does not include $22.0 million associated with our early extinguishment of debt relating to the redemption and call premiums on the 7.5% Senior Notes that occurred during the three months ended March 31, 2017.

 

(2) 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.

 

(3) 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 $54.2 million of goodwill impairment.

 

(4) Fixed charges do not include any portion of the expense associated with our deferred purchase price obligation that we owe pursuant to the terms of that certain Contribution Agreement, dated February 25, 2016, between us and Summit Midstream Partners Holdings, LLC.