Exhibit 12.1
SandRidge Energy, Inc.
Computation of Ratios of Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Stock Dividends
Year Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 243,818 | (a) | $ | 239,343 | (a) | $ | 186,137 | (a) | $ | 138,282 | (a) | $ | 117,185 | ||||||
Interest component of rent | 510 | 872 | 1,052 | 800 | 767 | |||||||||||||||
Capitalized interest | 3,052 | 1,265 | — | 365 | 1,987 | |||||||||||||||
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Total | $ | 247,380 | $ | 241,480 | $ | 187,189 | $ | 139,447 | $ | 119,939 | ||||||||||
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Earnings: | ||||||||||||||||||||
Pretax (loss) income from continuing operations (b) | $ | 102,139 | $ | (256,115 | ) | $ | (1,785,326 | ) | $ | (1,481,006 | ) | $ | 75,373 | |||||||
Fixed charges | 247,380 | 241,480 | 187,189 | 139,447 | 119,939 | |||||||||||||||
Less: interest capitalized in current period | (3,052 | ) | (1,265 | ) | — | (365 | ) | (1,987 | ) | |||||||||||
Add: previously capitalized interest amortized in current period | 377 | 246 | 222 | 481 | 197 | |||||||||||||||
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Total | $ | 346,844 | $ | (15,653 | ) | $ | (1,597,915 | ) | $ | (1,341,443 | ) | $ | 193,522 | |||||||
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Ratio of Earnings to Fixed Charges | 1.4 | — | — | — | 1.6 | |||||||||||||||
Insufficient coverage | $ | — | $ | 257,134 | $ | 1,785,104 | $ | 1,480,890 | $ | — | ||||||||||
Fixed Charges | $ | 247,380 | $ | 241,480 | $ | 187,189 | $ | 139,447 | $ | 119,939 | ||||||||||
Preferred dividends (c) | 55,583 | 37,442 | 8,813 | 16,232 | 63,337 | |||||||||||||||
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Total | $ | 302,963 | $ | 278,922 | $ | 196,002 | $ | 155,679 | $ | 183,276 | ||||||||||
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Earnings | $ | 346,844 | $ | (15,653 | ) | $ | (1,597,915 | ) | $ | (1,341,443 | ) | $ | 193,522 | |||||||
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Ratio of Earnings to Fixed Charges and Preferred Dividends | 1.1 | — | — | — | 1.1 | |||||||||||||||
Insufficient coverage | $ | — | $ | 294,576 | $ | 1,793,917 | $ | 1,497,122 | $ | — |
(a) | Interest expense for the year ended December 31, 2011, 2010, 2009 and 2008 excludes the effect of ($6.2) million, $8.4 million, $(0.4) million and $8.7 million unrealized (gain) loss, respectively, on interest rate swaps. |
(b) | Excludes undistributed income from equity investees. |
(c) | Preferred dividends are presented on a pre-tax basis. |