Exhibit 12.1
REX ENERGY CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Years ended December 31, | ||||||||||||||||||||
| (in thousands, except ratios) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
COMPUTATION OF EARNINGS (LOSS): | ||||||||||||||||||||
Income (loss) from continuing operations before income tax | $ | (74,565 | ) | $ | (6,538 | ) | $ | 92,203 | $ | 26,689 | $ | 14,092 | ||||||||
Add: Fixed charges | 46,924 | 30,404 | 9,427 | 3,673 | 1,240 | |||||||||||||||
Add: Equity method investment (income) loss | 813 | 763 | 3,921 | (81 | ) | 200 | ||||||||||||||
Less: Capitalized interest | 7,259 | 7,548 | 3,017 | 1,159 | — | |||||||||||||||
Less: Preferred Stock dividend requirements | 2,335 | — | — | — | — | |||||||||||||||
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Earnings (loss) | $ | (36,422 | ) | $ | 17,081 | $ | 102,534 | $ | 29,122 | $ | 15,532 | |||||||||
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COMPUTATION OF FIXED CHARGES: | ||||||||||||||||||||
Interest expense | $ | 35,443 | $ | 21,511 | $ | 5,387 | $ | 2,009 | $ | 1,002 | ||||||||||
Add: Amortization of premium (discount) on Senior Notes, net | 353 | 180 | (8 | ) | — | — | ||||||||||||||
Add: Capitalized interest | 7,259 | 7,548 | 3,017 | 1,159 | — | |||||||||||||||
Add: Preferred Stock dividend requirements | 2,335 | — | — | — | — | |||||||||||||||
Add: Amortized loan costs | 1,534 | 1,165 | 1,031 | 505 | 238 | |||||||||||||||
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Fixed charges, as defined | $ | 46,924 | | $ | 30,404 | $ | 9,427 | $ | 3,673 | $ | 1,240 | |||||||||
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Ratio of earnings (loss) to fixed charges and preferred stock dividends | — | (1) | 0.6x | (1) | 10.9x | 7.9x | 12.5x | |||||||||||||
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| (1) | Due to our net losses for the years ended December 31, 2014 and 2013, 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 $83.3 million and $13.3 million for the years ended December 31, 2014 and 2013, respectively. |
