Exhibit 12.1
Energy Partners, Ltd.
Computation of Ratio of Earnings to Fixed Charges
(in thousands)
Three Months Ended March 31, | Years Ended December 31, | ||||||||||||||||||||||||
2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||
Earnings: | |||||||||||||||||||||||||
Income before income taxes and before cumulative effect of change in accounting principle | $ | 5,760 | $ | 23,197 | $ | (78,485 | ) | $ | 114,687 | $ | 72,932 | $ | 48,766 | $ | (13,481 | ) | |||||||||
Fixed charges | 5,251 | 6,928 | 25,281 | 18,839 | 18,852 | 14,982 | 11,791 | ||||||||||||||||||
Dividends | — | — | — | — | (3,783 | ) | (4,050 | ) | (4,019 | ) | |||||||||||||||
Interest capitalized | — | — | — | — | — | — | — | ||||||||||||||||||
Total Earnings | 11,011 | 30,125 | (53,204 | ) | 133,526 | 88,002 | 59,698 | (5,709 | ) | ||||||||||||||||
Fixed Charges: | |||||||||||||||||||||||||
Interest expense | 5,084 | 6,757 | 24,570 | 18,121 | 14,355 | 10,174 | 6,988 | ||||||||||||||||||
Dividends | — | — | — | 0 | 3,783 | 4,050 | 4,019 | ||||||||||||||||||
Interest capitalized | — | — | — | — | — | — | — | ||||||||||||||||||
Estimate of interest in rent expense | 167 | 171 | 711 | 718 | 715 | 758 | 784 | ||||||||||||||||||
Total Fixed Charges | $ | 5,251 | $ | 6,928 | $ | 25,281 | $ | 18,839 | $ | 18,852 | $ | 14,982 | $ | 11,791 | |||||||||||
Ratio of earnings to fixed charges (1) | 2.10 | 4.35 | — | 7.09 | 4.67 | 3.98 | — |
(1) | For the years ended December 31, 2006 and 2002, the ratio of earnings to fixed charges was less than a one to one coverage due to a deficiency of $78.5 million and $9.1 million, respectively. |
Energy Partners, Ltd.
Pro Forma Computation of Ratio of Earnings to Fixed Charges
(in thousands)
Pro Forma Three Months Ended March 31, 2007 | Pro Forma Year Ended December 31, 2006 | ||||||
Earnings: | |||||||
Income before income taxes and before cumulative effect of change in accounting principle | $ | 339 | $ | (74,328 | ) | ||
Fixed Charges: | 47,738 | 48,282 | |||||
Dividends | — | — | |||||
Interest capitalized | — | — | |||||
Total Earnings | 48,077 | (26,046 | ) | ||||
Fixed Charges: | |||||||
Interest expense | 47,571 | 47,571 | |||||
Dividends | — | — | |||||
Interest capitalized | — | — | |||||
Estimate of interest in rent expense | 167 | 711 | |||||
Total Fixed Charges | $ | 47,738 | $ | 48,282 | |||
Ratio of earnings to fixed charges (2) | 1.01 | — |
(2) | For the year ended December 31, 2006, the pro forma ratio of earnings to fixed charges was less than a one-to-one coverage due to a deficiency of $73.9 million. |