Exhibit 12.1
SandRidge Energy, Inc.
Computation of Ratio of Earnings to Fixed Charges
For the Six Months Ended | ||||||||||||||||||||||||||||
June 30, | Year Ended December 31, | |||||||||||||||||||||||||||
2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 122,576 | (a) | $ | 118,099 | (a) | $ | 239,343 | (b) | $ | 186,137 | (b) | $ | 138,282 | (b) | $ | 117,185 | $ | 16,904 | |||||||||
Interest component of rent (c) | 199 | 351 | 872 | 1,052 | 800 | 767 | 367 | |||||||||||||||||||||
Capitalized interest | 784 | — | 1,265 | — | 365 | 1,987 | 1,378 | |||||||||||||||||||||
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Total | $ | 123,559 | $ | 118,450 | $ | 241,480 | $ | 187,189 | $ | 139,447 | $ | 119,939 | $ | 18,649 | ||||||||||||||
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Earnings: | ||||||||||||||||||||||||||||
Pretax (loss) income from continuing operations (d) | $ | (99,295 | ) | $ | 80,914 | $ | (256,115 | ) | $ | (1,785,326 | ) | $ | (1,481,006 | ) | $ | 75,373 | $ | 20,890 | ||||||||||
Fixed charges | 123,559 | 118,450 | 241,480 | 187,189 | 139,447 | 119,939 | 18,649 | |||||||||||||||||||||
Less: interest capitalized in current period | (784 | ) | — | (1,265 | ) | — | (365 | ) | (1,987 | ) | (1,378 | ) | ||||||||||||||||
Add: previously capitalized interest amortized in current period | 156 | 111 | 246 | 222 | 481 | 197 | — | |||||||||||||||||||||
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Total | $ | 23,636 | $ | 199,475 | $ | (15,653 | ) | $ | (1,597,915 | ) | $ | (1,341,443 | ) | $ | 193,522 | $ | 38,161 | |||||||||||
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Ratio of Earnings to Fixed Charges | — | �� | 1.7 | — | — | — | 1.6 | 2.0 | ||||||||||||||||||||
Insufficient coverage | $ | 99,923 | $ | — | $ | 257,134 | $ | 1,785,104 | $ | 1,480,890 | $ | — | $ | — |
(a) | Interest expense for the six month periods ended June 30, 2011 and 2010 exclude the effects of $4.4 million and $8.2 million unrealized losses, respectively, on interest rate swaps. |
(b) | Interest expense for the years ended December 31, 2010, 2009 and 2008 excludes the effect of $8.4 million, $(0.4) million and $8.7 million unrealized loss (gain), respectively, on interest rate swaps. |
(c) | Represents a reasonable approximation of the interest factor. |
(d) | Excludes undistributed income from equity investees. |