GMX Resources (GMXRW) 10-Q 2012 Q2 Quarterly report

EXHIBIT 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS

The following table contains our earnings to fixed charges and to combined fixed charges and preference dividends for the periods indicated. You should read these ratios in connection with our consolidated financial statements, including the notes to those statements, incorporated by reference herein.

																Six Months
																Ended
	2007			2008			2009			2010			2011			June 30, 2012
(Dollars in Thousands)
EARNINGS:
Net income (loss) before taxes (2)	$	24,895		$	(150,138	)	$	(181,120	)	$	(142,531	)	$	(205,833	)	$	(137,883	)
Fixed charges	4,210			14,466			18,507			20,485			38,771			26,594
Capitalized interest	(122		)	(361		)	(1,760		)	(2,632		)	(7,771		)	(5,769		)
Noncontrolling interest in net loss before taxes	—			—			(173		)	(3,114		)	(5,389		)	(1,870		)
Earnings (Loss)	$	28,983		$	(136,033	)	$	(164,546	)	$	(127,792	)	$	(180,222	)	$	(118,928	)
FIXED CHARGES:
Interest expense	$	3,833		$	10,010		$	10,712		$	9,312		$	22,498		$	16,627
Capitalized interest	122			361			1,760			2,632			7,771			5,769
Amortization of premiums and discounts related to indebtedness	—			2,424			3,522			5,692			5,392			3,144
Loan cost amortization	255			1,671			2,513			2,849			3,110			1,054
Fixed Charges	$	4,210		$	14,466		$	18,507		$	20,485		$	38,771		$	26,594
PREFERRED STOCK DIVIDENDS:
Preferred dividends requirement	$	4,625		$	4,625		$	4,625		$	4,633		$	6,720		$	3,673
Ratio of income (loss) before provision for taxes to net income (loss) (2)	1.47			1.21			1.00			1.03			1.00			0.98
Preferred Dividends	$	6,819		$	5,603		$	4,626		$	4,775		$	6,700		$	3,600
COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS	$	11,029		$	20,069		$	23,133		$	25,260		$	45,471		$	30,194
RATIO OF EARNINGS (LOSS) TO FIXED CHARGES (1)	6.88			(9.40		)	(8.89		)	(6.24		)	(4.65		)	(4.47		)
INSUFFICIENT COVERAGE	$	—		$	150,499		$	183,053		$	148,277		$	218,993		$	145,522
RATIO OF EARNINGS (LOSS) TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS (1)	2.63			(6.78		)	(7.11		)	(5.06		)	(3.96		)	(3.94		)
INSUFFICIENT COVERAGE	$	—		$	156,102		$	187,679		$	153,052		$	225,693		$	149,122

(1) For purposes of determining the ratio of earnings to fixed charges and the ratio of combined fixed charges and preference dividends to earnings, earnings are defined as income before income taxes, plus fixed charges (excluding amortization of capitalized interest) less capitalized interest. Fixed charges consist of interest incurred (whether expensed or capitalized) and amortization of deferred financing costs. Preference dividends consist of dividends paid with respect to our outstanding preferred stock.

(2) Net income (loss) reflect retrospective adoption of the cumulative effect of accounting changes for the years ended December 31, 2008 and 2009.