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MIDSTATES PETROLEUM COMPANY, INC.
RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND
PREFERRED DIVIDENDS
(In thousands, except ratios)
| Year Ended December 31, | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||
Earnings available before fixed charges: | ||||||||||||||||
Pre-tax income (loss) | $ | (1,806,836 | ) | $ | 123,324 | $ | (490,514 | ) | $ | 7,789 | $ | 16,657 | ||||
Interest expense | 151,832 | 129,691 | 77,179 | 11,711 | 2,094 | |||||||||||
Amortization of capitalized interest | 23,960 | 4,961 | 10,683 | 1,050 | 615 | |||||||||||
Loan cost amortization | 11,316 | 7,857 | 5,960 | 1,529 | 850 | |||||||||||
Portion of rental expense which represents interest factor | 699 | 698 | 497 | 340 | 179 | |||||||||||
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Total earnings available for fixed charges | $ | (1,619,029 | ) | $ | 266,531 | $ | (396,195 | ) | $ | 22,419 | $ | 20,395 | ||||
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Interest expense | $ | 151,832 | $ | 129,691 | $ | 77,179 | $ | 11,711 | $ | 2,094 | ||||||
Capitalized interest | 4,859 | 12,415 | 32,245 | 11,175 | 2,600 | |||||||||||
Loan cost amortization | 11,316 | 7,857 | 5,960 | 1,529 | 850 | |||||||||||
Portion of rental expense which represents interest factor | 699 | 698 | 497 | 340 | 179 | |||||||||||
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Total fixed charges | $ | 168,706 | $ | 150,661 | $ | 115,881 | $ | 24,755 | $ | 5,723 | ||||||
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Ratio of earnings to fixed charges | — | 1.8x | — | — | 3.6x | |||||||||||
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Insufficient coverage | $ | 1,787,735 | $ | — | $ | 512,076 | $ | 2,336 | $ | — | ||||||
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Total fixed charges | $ | 168,706 | $ | 150,661 | $ | 115,881 | $ | 24,755 | $ | 5,723 | ||||||
Pre-tax preferred dividends(1) | 23,545 | 30,863 | 38,588 | 10,844 | — | |||||||||||
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Total fixed charges plus preferred dividends | $ | 192,251 | $ | 181,524 | $ | 154,469 | $ | 35,599 | $ | 5,723 | ||||||
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Ratio of earnings to combined fixed charges and preferred dividends | — | 1.5x | — | — | 3.6x | |||||||||||
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Insufficient coverage | $ | 1,811,280 | $ | — | $ | 550,664 | $ | 13,180 | $ | — | ||||||
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- (1)
- Prior to October 1, 2012, the Company did not have any preferred stock outstanding. Preferred dividends shown herein relate to the Company's Series A Mandatorily Convertible Preferred Stock ("Series A Preferred Stock") issued on October 1, 2012, which allows, at the Company's option, for the 8% annual dividend payment to be made either in cash or through an adjustment to the Series A Preferred Stock liquidation preference. Pre-tax preferred stock dividend amounts for the years ended December 31, 2015, 2014, 2013 and 2012 were calculated utilizing the Company's effective tax rate for the applicable periods (0.5%, 5.2%, 29.9% and 40.1%, respectively) and represent the notional dividend amount as though paid in cash, rather than through an adjustment to the Series A Preferred Stock liquidation preference.
MIDSTATES PETROLEUM COMPANY, INC. RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS (In thousands, except ratios)