EX-12.1 10 d434138dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

($ in 000’s)

 

     Quarter ended
September 30,		     Years ended December 31,  
     2012     2011     2010     2009     2008     2007  

Earnings:

             

Add:

             

Income (loss) before income taxes

    $ (230,570 )    $ 1,050,990      $ 995,492      $ (52,155 )    $ 919,532      $ 357,374   

Fixed charges

      33,197        97,609        84,740        77,766        79,785        48,802   

Amortization of capitalized interest

      9,204        12,083        10,336        7,636        5,401        4,176   

Deduct:

             

Interest capitalized

      (15,915 )      (45,652 )      (32,916 )      (40,209 )      (34,532 )      (13,792 ) 

Noncontrolling interest

      —          —          285        142        (587 )      (345 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings for computation

    $ (204,084 )    $ 1,115,030      $ 1,057,937      $ (6,820 )    $ 969,599      $ 396,215   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

             

Gross interest expense

    $ 25,463      $ 65,421      $ 57,144      $ 55,581      $ 61,152      $ 36,191   

Amortization of debt issuance/discount

      982        3,455        1,610        1,633        1,691        832   

Portion of rents representative of interest

      6,752        28,733        25,986        20,552        16,942        11,778   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 33,197      $ 97,609      $ 84,740      $ 77,766      $ 79,785      $ 48,801   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      —   1       11.42        12.48        —   1       12.15        8.12   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings insufficient to cover fixed charges

    $ (237,281 )      N/A        N/A      $ (84,586 )      N/A        N/A   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1 

During the quarter-ended September 30, 2012 and year-ended December 31, 2009, the Company recorded a non-cash full cost ceiling impairment of $441.5 and $907.8 million, respectively. Excluding the impairment, the ratio of earnings to fixed charges would be 7.15 and 11.59 for the quarter-ended September 30, 2012 and year-ended December 31, 2009, respectively.