QuickLinks -- Click here to rapidly navigate through this document
Kosmos Energy Ltd.
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
| Three Months Ended March 31, 2012 | Years Ended December 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||
EARNINGS: | |||||||||||||||||||
Add: | |||||||||||||||||||
Income (loss) before income taxes | $ | (21,255 | ) | $ | 99,043 | $ | (322,780 | ) | $ | (78,774 | ) | $ | (48,536 | ) | $ | (60,070 | ) | ||
Fixed charges | 17,112 | 98,021 | 107,868 | 16,701 | 219 | 117 | |||||||||||||
Amortization of capitalized interest | 626 | 2,240 | 179 | — | — | — | |||||||||||||
Less: | |||||||||||||||||||
Capitalized interest | (1,350 | ) | (4,164 | ) | (9,848 | ) | (605 | ) | — | — | |||||||||
Earnings as defined | $ | (4,867 | ) | $ | 195,140 | $ | (224,581 | ) | $ | (62,678 | ) | $ | (48,317 | ) | $ | (59,953 | ) | ||
FIXED CHARGES: | |||||||||||||||||||
Interest Expense | $ | 13,058 | $ | 65,749 | $ | 59,582 | $ | 6,774 | $ | 1 | $ | 8 | |||||||
Capitalized interest | 1,350 | 4,164 | 9,848 | 605 | — | — | |||||||||||||
Amortization—deferred financing costs | 2,194 | 16,193 | 28,827 | 2,492 | — | — | |||||||||||||
Interest component of rent expense(1) | 510 | 11,915 | 9,611 | 6,830 | 218 | 109 | |||||||||||||
Fixed Charges as defined | $ | 17,112 | $ | 98,021 | $ | 107,868 | $ | 16,701 | $ | 219 | $ | 117 | |||||||
RATIO OF EARNINGS TO FIXED CHARGES(2) | N/A | 2.0x | N/A | N/A | N/A | N/A | |||||||||||||
- (1)
- Represents the portion of rental expense that we believe to be representative of interest expense.
- (2)
- Earnings were inadequate to cover fixed charges by $22.0 million for the three months ended March 31, 2012 and $332.4 million, $79.4 million, $48.5 million and $60.1 million for the years ended December 31, 2010, 2009, 2008 and 2007, respectively.
Kosmos Energy Ltd. Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)