Exhibit 12.1
Legacy Reserves LP
Computation of Ratios of Earnings to Fixed Charges
(In thousands, except ratios)
| | | Three Months | | | | | | | | | | | | | | | | | | | |
| | | Ended | | | | | | | | | | | | | | | | | | | |
| | | March 31, | | Years Ended December 31, |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 |
| Income (loss) before income taxes | | $ | (60,700 | ) | | $ | 11,346 | | | $ | (92,277 | ) | | $ | 154,551 | | | $ | (55,325 | ) | | $ | 4,357 |
| Equity in (income) loss of equity method | | | | | | | | | | | | | | | | | | | | | | | |
| investee | | | (29 | ) | | | (97 | ) | | | (31 | ) | | | (108 | ) | | | (77 | ) | | | 318 |
| Distributed income of equity method investee | | | — | | | | — | | | | — | | | | — | | | | — | | | | — |
| Income (loss) from operations before income | | | | | | | | | | | | | | | | | | | | | | | |
| taxes | | $ | (60,729 | ) | | $ | 11,249 | | | $ | (92,308 | ) | | $ | 154,443 | | | $ | (55,402 | ) | | $ | 4,675 |
| |
| Fixed Charges | | | | | | | | | | | | | | | | | | | | | | | |
| |
| Interest expensed | | $ | 4,598 | | | $ | 16,415 | | | $ | 15,366 | | | $ | 11,442 | | | $ | 6,894 | | | $ | 6,284 |
| Amortization of debt issuance costs | | | 468 | | | | 2,023 | | | | 1,646 | | | | 748 | | | | 224 | | | | 361 |
| Estimated portion of rental expense attributable to | | | | | | | | | | | | | | | | | | | | | | | |
| interest | | | 28 | | | | 112 | | | | 59 | | | | 59 | | | | 59 | | | | 27 |
| Total fixed charges | | $ | 5,094 | | | $ | 18,550 | | | $ | 17,071 | | | $ | 12,249 | | | $ | 7,177 | | | $ | 6,672 |
| |
| Earnings available for fixed charges | | $ | (55,635 | ) | | $ | 29,799 | | | $ | (75,237 | ) | | $ | 166,692 | | | $ | (48,225 | ) | | $ | 11,347 |
| |
| Ratio of earnings to fixed charges | | | (1 | ) | | | 1.61x | | | | (2 | ) | | | 13.61x | | | | (3 | ) | | | 1.70x |
| |
____________________
| (1) | | Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $60.729 million |
| (2) | | Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $92.308 million |
| (3) | | Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $55.402 million |
