Exhibit 12.1
SILVERBOW RESOURCES, INC.
RATIO OF EARNINGS TO FIXED CHARGES (in thousands)
Predecessor | Successor | |||||||||||||||||||||||||||
Year Ended December 31, | January 1, 2016 to April 22, 2016 | April 23, 2016 to December 31, 2016 | Three Months Ended March 31, 2017 | |||||||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | |||||||||||||||||||||||||
EARNINGS (LOSS) | ||||||||||||||||||||||||||||
BEFORE INCOME TAXES | $ | 37,773 | $ | 198 | $ | (433,470 | ) | $ | (1,734,514 | ) | $ | 851,611 | $ | (156,288 | ) | $ | 17,710 | |||||||||||
PLUS FIXED CHARGES | 66,180 | 77,636 | 79,019 | 81,600 | 13,517 | 16,140 | 3,803 | |||||||||||||||||||||
LESS CAPITALIZED INTEREST | (7,890 | ) | (7,223 | ) | (5,024 | ) | (4,893 | ) | 0 | (537 | ) | (196 | ) | |||||||||||||||
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EARNINGS AVAILABLE FOR FIXED CHARGES | $ | 96,063 | $ | 70,611 | $ | (359,475 | ) | $ | (1,657,807 | ) | $ | 865,128 | $ | (140,685 | ) | $ | 21,317 | |||||||||||
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FIXED CHARGES | ||||||||||||||||||||||||||||
INTEREST EXPENSE | $ | 57,303 | $ | 69,382 | $ | 73,207 | $ | 75,870 | $ | 13,347 | $ | 15,310 | $ | 3,607 | ||||||||||||||
CAPITALIZED INTEREST | 7,890 | 7,223 | 5,024 | 4,893 | 0 | 537 | 196 | |||||||||||||||||||||
INTEREST COMPONENT OF RENT | 987 | 1,031 | 788 | 837 | 170 | 293 | 0 | |||||||||||||||||||||
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66,180 | 77,636 | 79,019 | 81,600 | 13,517 | 16,140 | 3,803 | ||||||||||||||||||||||
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RATIO OF EARNINGS TO FIXED CHARGES | 1.45 | 0.91 | — | — | 64.00 | — | 5.61 | |||||||||||||||||||||
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Deficiency of earnings to fixed charges | $ | 438,494 | $ | 1,739,407 | $ | 156,825 |
For purposes of calculating the ratio of earnings to fixed charges, fixed charges include interest expense, capitalized interest, amortization of debt issuance costs and discounts, and that portion of non-capitalized rental expense deemed to be the equivalent of interest. Earnings represents income before income taxes and cumulative effect of change in accounting principle before interest expense, net, and that portion of rental expense deemed to be the equivalent of interest. Due to the non-cash charge incurred in 2015 caused by the write-downs in the carrying value of oil and gas properties, 2015 earnings were insufficient by $1.74 billion to cover fixed charges.