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Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(In thousands, except ratios)
| Three Months Ended March 31, | Years Ended December 31, | ||||||||||||||||||||
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| 2015 | 2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Earnings: | ||||||||||||||||||||||
Income (loss) before income taxes | $ | (587,728 | ) | $ | (72,964 | ) | $ | 314,880 | $ | (1,380,378 | ) | $ | (67,066 | ) | $ | 5,399 | $ | 3,412 | ||||
Adjustments: | ||||||||||||||||||||||
Equity investment (income) loss | (6 | ) | (831 | ) | (617 | ) | (97 | ) | (373 | ) | — | — | ||||||||||
Interest capitalized | (24,741 | ) | (46,816 | ) | (168,897 | ) | (203,993 | ) | (53,492 | ) | — | — | ||||||||||
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Income (loss) before income taxes, as adjusted | $ | (612,475 | ) | $ | (120,611 | ) | $ | 145,366 | $ | (1,584,468 | ) | $ | (120,931 | ) | $ | 5,399 | $ | 3,412 | ||||
Fixed charges | 84,405 | 79,275 | 320,403 | 262,046 | 86,589 | 17,808 | 23,087 | |||||||||||||||
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Total earnings | $ | (528,070 | ) | $ | (41,336 | ) | $ | 465,769 | $ | (1,322,422 | ) | $ | (34,342 | ) | $ | 23,207 | $ | 26,499 | ||||
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Fixed charges: | ||||||||||||||||||||||
Interest expense and amortization of finance costs | $ | 83,740 | $ | 78,654 | $ | 317,732 | $ | 259,159 | $ | 85,372 | $ | 17,373 | $ | 22,655 | ||||||||
Rental expense representative of interest factor | 665 | 621 | 2,671 | 2,887 | 1,217 | 435 | 432 | |||||||||||||||
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Total fixed charges | $ | 84,405 | $ | 79,275 | $ | 320,403 | $ | 262,046 | $ | 86,589 | $ | 17,808 | $ | 23,087 | ||||||||
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Ratio of earnings to fixed charges | — | (1) | — | (3) | 1.5 | — | (5) | — | (6) | 1.3 | 1.1 | |||||||||||
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Total fixed charges | $ | 84,405 | $ | 79,275 | $ | 320,403 | $ | 262,046 | $ | 86,589 | $ | 17,808 | $ | 23,087 | ||||||||
Pre-tax preferred dividend requirements | 13,554 | 4,959 | 32,902 | 12,132 | 110,075 | — | — | |||||||||||||||
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Total fixed charges plus preference dividends | $ | 97,959 | $ | 84,234 | $ | 353,305 | $ | 274,178 | $ | 196,664 | $ | 17,808 | $ | 23,087 | ||||||||
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Ratio of earnings to combined fixed charges and preference dividends | — | (2) | — | (4) | 1.3 | — | (5) | — | (7) | 1.3 | 1.1 | |||||||||||
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- (1)
- Due to the Company's "Loss before income taxes, as adjusted" for the three months ended March 31, 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $612.5 million to achieve a coverage ratio of 1:1.
- (2)
- Due to the Company's "Loss before income taxes, as adjusted" for the three months ended March 31, 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $626.0 million to achieve a coverage ratio of 1:1.
- (3)
- Due to the Company's "Loss before income taxes, as adjusted" for the three months ended March 31, 2014, the ratio coverage was less than 1:1. The Company must generate additional earnings of $120.6 million to achieve a coverage ratio of 1:1.
- (4)
- Due to the Company's "Loss before income taxes, as adjusted" for the three months ended March 31, 2014, the ratio coverage was less than 1:1. The Company must generate additional earnings of $125.6 million to achieve a coverage ratio of 1:1.
- (5)
- Due to the Company's "Loss before income taxes, as adjusted" in 2013, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.6 billion to achieve a coverage ratio of 1:1.
- (6)
- Due to the Company's "Loss before income taxes, as adjusted" in 2012, the ratio coverage was less than 1:1. The Company must generate additional earnings of $120.9 million to achieve a coverage ratio of 1:1.
- (7)
- Due to the Company's "Loss before income taxes, as adjusted" in 2012, the ratio coverage was less than 1:1. The Company must generate additional earnings of $231.0 million to achieve a coverage ratio of 1:1.
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Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends (In thousands, except ratios)