EX-12.1 5 exh-121x1213.htm RATIO OF EARNINGS TO FIXED CHARGES Exh-12.1-12.13
EXHIBIT 12.1

SUMMIT MIDSTREAM PARTNERS, LP
RATIO OF EARNINGS TO FIXED CHARGES
 
SMLP
 
Initial Predecessor
 
Year ended December 31,
 
Period from September 3, 2009 to December 31, 2009
 
Period from January 1, 2009 to September 3, 2009
 
2013
 
2012
 
2011
 
2010
 
 
 
(In thousands)
Earnings: (1)
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
$
44,365

 
$
42,408

 
$
38,646

 
$
8,296

 
$
(6,599
)
 
$
(829
)
Add (deduct):
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
23,758

 
15,791

 
6,579

 
70

 
9

 
247

Capitalized interest
(4,209
)
 
(2,784
)
 
(3,362
)
 
—

 
—

 
—

Total Earnings
$
63,914

 
$
55,415

 
$
41,863

 
$
8,366

 
$
(6,590
)
 
$
(582
)
Fixed charges: (1)
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
19,173

 
$
12,766

 
$
3,054

 
$
—

 
$
—

 
$
247

Capitalized interest
4,209

 
2,784

 
3,362

 
—

 
—

 
—

Estimate of interest within rental expense
376

 
241

 
163

 
70

 
9

 
—

Total fixed charges
$
23,758

 
$
15,791

 
$
6,579

 
$
70

 
$
9

 
$
247

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.69

 
3.51

 
6.36

 
119.51

 
(732.22) (2)

 
(2.36) (3)

__________
(1) For purposes of this presentation, earnings represent income before income taxes adjusted for fixed charges and capitalized interest. Fixed charges consist of interest expensed and capitalized, amortization of deferred loan costs and an estimate of interest in rent expense.
(2) The ratio of earnings to fixed charges was less than 1:1 for the period from September 3, 2009 to December 31, 2009. In order to achieve a ratio of earnings to fixed charges of 1:1, we would have had to generate an additional $6.6 million of earnings for the period from September 3, 2009 to December 31, 2009.
(3) The ratio of earnings to fixed charges was less than 1:1 for the period from January 1, 2009 to September 3, 2009. In order to achieve a ratio of earnings to fixed charges of 1:1, we would have had to generate an additional $0.8 million of earnings for the period from January 1, 2009 to September 3, 2009.


EXH 12.1-1