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Kosmos Energy Ltd.
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
| | Years Ended December 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended June 30, 2018 | ||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
EARNINGS: | |||||||||||||||||||
Add: | |||||||||||||||||||
Income (loss) before income taxes | $ | (223,192 | ) | $ | (177,855 | ) | $ | (294,564 | ) | $ | 85,436 | $ | 578,268 | $ | 75,954 | ||||
Fixed charges | 72,870 | 176,158 | 207,204 | 169,725 | 95,966 | 75,028 | |||||||||||||
Amortization of capitalized interest | 10,566 | 20,200 | 12,335 | 13,093 | 7,601 | 5,990 | |||||||||||||
Less: | |||||||||||||||||||
Capitalized interest | (14,112 | ) | (30,282 | ) | (59,803 | ) | (52,392 | ) | (20,577 | ) | (13,074 | ) | |||||||
Earnings as defined | $ | (68,664 | ) | $ | (5,527 | ) | $ | (134,828 | ) | $ | 215,862 | $ | 661,258 | $ | 143,898 | ||||
FIXED CHARGES: | |||||||||||||||||||
Interest Expense | $ | 51,688 | $ | 101,095 | $ | 95,700 | $ | 79,956 | $ | 53,208 | $ | 49,885 | |||||||
Capitalized interest | 14,112 | 30,282 | 59,803 | 52,392 | 20,577 | 13,074 | |||||||||||||
Amortization—deferred financing costs | 4,723 | 10,204 | 10,204 | 10,324 | 10,548 | 11,054 | |||||||||||||
Interest component of rent expense(1) | 2,347 | 34,577 | 41,497 | 27,053 | 11,633 | 1,015 | |||||||||||||
Fixed Charges as defined | $ | 72,870 | $ | 176,158 | $ | 207,204 | $ | 169,725 | $ | 95,966 | $ | 75,028 | |||||||
RATIO OF EARNINGS TO FIXED CHARGES(2) | N/A | N/A | N/A | 1.3x | 6.9x | 1.9x |
- (1)
- Represents the portion of rental expense that we believe to be representative of interest expense.
- (2)
- Earnings were inadequte to cover fixed charges by $141.5 million for the three months ended June 30, 2018 and $181.7 million and $342.0 million for the years ended December 31, 2017 and 2016, respectively.
Kosmos Energy Ltd. Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)