Exhibit 12.1
REX ENERGY CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Nine months ended September 30, | Years ended December 31, | |||||||||||||||||||||||
| (in thousands, except ratios) | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||
COMPUTATION OF EARNINGS (LOSS): | ||||||||||||||||||||||||
Income (loss) from continuing operations before income tax | $ | 35,858 | $ | (6,538 | ) | $ | 92,203 | $ | 26,689 | $ | 14,092 | $ | (27,570 | ) | ||||||||||
Add: Fixed charges | 31,915 | 31,569 | 10,458 | 4,178 | 1,478 | 974 | ||||||||||||||||||
Add: Equity method investment (income) loss | 610 | 763 | 3,921 | (81 | ) | 200 | 9 | |||||||||||||||||
Less: Capitalized interest | 5,348 | 7,548 | 3,017 | 1,159 | — | — | ||||||||||||||||||
Less: Preferred Stock dividend requirements | — | — | — | — | — | — | ||||||||||||||||||
Less: Noncontrolling interest share of (income) loss | — | — | — | — | — | 12 | ||||||||||||||||||
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Earnings (loss) | $ | 63,035 | $ | 18,246 | $ | 103,565 | $ | 29,627 | $ | 15,770 | $ | (26,575 | ) | |||||||||||
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COMPUTATION OF FIXED CHARGES: | ||||||||||||||||||||||||
Interest expense | $ | 25,236 | $ | 22,676 | $ | 6,418 | $ | 2,514 | $ | 1,240 | $ | 833 | ||||||||||||
Add: Amortization of premium (discount) on Senior Notes, net | 262 | 180 | (8 | ) | — | — | — | |||||||||||||||||
Add: Capitalized interest | 5,348 | 7,548 | 3,017 | 1,159 | — | — | ||||||||||||||||||
Add: Preferred Stock dividend requirements | — | — | — | — | — | — | ||||||||||||||||||
Add: Amortized loan costs | 1,069 | 1,165 | 1,031 | 505 | 238 | 141 | ||||||||||||||||||
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Fixed charges, as defined | $ | 31,915 | $ | 31,569 | $ | 10,458 | $ | 4,178 | $ | 1,478 | $ | 974 | ||||||||||||
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Ratio of earnings (loss) to fixed charges and preferred stock dividends | 2.0x | — | (1) | 9.9x | 7.1x | 10.7x | — | (1) | ||||||||||||||||
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| (1) | Due to our net losses for the years ended December 31, 2013 and 2009, the coverage ratio for each of these periods was less than 1:1. To achieve a coverage ratio of 1:1, we would have needed additional earnings of approximately $13.3 million and $27.5 million for the years ended December 31, 2013 and 2009, respectively. |
