EX-12.1 3 a2014exhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 2014 Exhibit 12.1


Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
 
 
Successor
 
 
 
Predecessor
 
December 31, 2014
 
December 17, 2013
through
December 31, 2013
 
 
 
January 1, 2013 to December 16, 2013
 
December 31, 2012
 
December 31, 2011
 
 
December 31, 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
$
22,665

 
$
(19,973
)
 
 
 
$
158,727

 
$
259,660

 
$
(370,291
)
 
 
$
136,492

Interest expense
87,948

 
3,963

 
 
 
96,127

 
83,136

 
72,807

 
 
66,541

Amortization of capitalized interest
209

 
—

 
 
 
2,902

 
2,116

 
1,813

 
 
—

Capitalized interest
5,826

 
41

 
 
 
6,145

 
17,915

 
29,117

 
 
28,321

Earnings
$
110,822

 
$
(16,010
)
 
 
 
$
257,756

 
$
344,912

 
$
(295,671
)
 
 
$
203,033

Ratio of earnings to fixed charges
1.2

 
—

(1) 
 
 
2.5

 
3.4

 
—

(1) 
 
2.1

(1) 
For the period from December 17, 2013 through December 31, 2013, earnings were insufficient to cover fixed charges by approximately $20 million, primarily due to approximately $16 million in costs associated with the LINN Energy transaction. For the year ended December 31, 2011, earnings were insufficient to cover fixed charges by approximately $398 million, primarily due to pre-tax, noncash impairment charges of approximately $625 million associated with natural gas properties in east Texas related to a decline in natural gas prices.
For purposes of this table, “earnings” consists of earnings before income taxes plus interest expense and amortization of capitalized interest.  “Fixed charges” consists of interest expensed and capitalized.