Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
The table below sets forth the Ratios of Earnings to Fixed Charges for us for the periods indicated. On October 26, 2006, we completed our initial public offering whereby we became the successor to the business of Eagle Rock Pipeline, L.P. As such, the years ended December 31, 2004 and 2005 reflect the financial results of Eagle Rock Pipeline, L.P. and the years ended December 31, 2007 and 2008 and the nine months ended September 30, 2009, reflect the financial results of Eagle Rock Energy Partners, L.P.
| Predecessor | Successor | |||||||||||||||||||||||
| Nine Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| Year Ended December 31, | Sept. 30, | |||||||||||||||||||||||
| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||||
| Interest expense | $ | $ | 3,878 | $ | 29,759 | $ | 37,521 | $ | 38,098 | $ | 30,951 | |||||||||||||
| Amortization of debt issuance costs | 76 | 1,114 | 1,777 | 958 | 801 | |||||||||||||||||||
| Write-off of debt issuance costs | 6,215 | |||||||||||||||||||||||
| Estimated interest associated with rental expense(1) | 12 | 167 | 100 | 1,200 | 1,933 | 2,000 | ||||||||||||||||||
| Total fixed charges | $ | 12 | $ | 4,121 | $ | 30,973 | $ | 46,713 | $ | 40,989 | $ | 33,752 | ||||||||||||
| Net income (loss) from continuing operations before income taxes | $ | (1,210 | ) | $ | 2,750 | $ | (22,084 | ) | $ | (145,465 | ) | $ | 86,404 | $ | (101,235 | ) | ||||||||
| Income from equity investees | 714 | 4,021 | 988 | |||||||||||||||||||||
| Net income (loss) from continuing operations before income taxes before income from equity investees | (1,210 | ) | 2,750 | (22,084 | ) | (146,179 | ) | 82,383 | (102,223 | ) | ||||||||||||||
| Distributed income of equity investees | 408 | 3,643 | 247 | |||||||||||||||||||||
| Fixed charges | 12 | 4,121 | 30,973 | 46,713 | 40,989 | 33,752 | ||||||||||||||||||
| Total earnings | $ | (1,198 | ) | $ | 6,871 | $ | 8,889 | $ | (99,058 | ) | $ | 127,015 | $ | (68,224 | ) | |||||||||
| Ratio of earnings to fixed charges(2) | — | 1.67 | x | 0.29 | x | — | 3.10 | x | — | |||||||||||||||
| (1) | Calculated as one third of rent expense, which is a reasonable approximation of the interest factor. | |
| (2) | For the years ended December 31, 2004, 2006 and 2007 and for the nine months ended September 30, 2009, earnings were inadequate to cover fixed charges by $1.21 million, $22.08 million, $145.77 million and $101.98 million, respectively. |