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Midstates Petroleum Company, Inc.
Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
| Six Months Ended June 30, 2013 | | | | | | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year Ended December 31, | ||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
Earnings available before fixed charges: | |||||||||||||||||||
Pre-tax income (loss) | (7,591 | ) | 7,789 | 16,657 | (15,635 | ) | (11,752 | ) | (6,422 | ) | |||||||||
Add: Fixed charges | 42,665 | 24,755 | 5,723 | 2,114 | 981 | 871 | |||||||||||||
Total additive items | 35,064 | 32,544 | 22,380 | (13,521 | ) | (10,771 | ) | (5,551 | ) | ||||||||||
Less: Capitalized interest | (14,915 | ) | (11,175 | ) | (2,600 | ) | (1,654 | ) | (830 | ) | — | ||||||||
Total earnings available for fixed charges | $ | (20,149 | ) | $ | 21,369 | $ | 19,780 | $ | (15,175 | ) | $ | (11,601 | ) | $ | (5,551 | ) | |||
Interest expensed | $ | 25,224 | $ | 11,711 | $ | 2,094 | $ | — | $ | — | $ | 854 | |||||||
Interest capitalized | 14,915 | 11,175 | 2,600 | 1,654 | 830 | — | |||||||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness | 2,264 | 1,529 | 850 | 314 | 41 | — | |||||||||||||
Portion of rental expense which represents interest factor(1) | 252 | 340 | 179 | 146 | 110 | 17 | |||||||||||||
Total Fixed Charges | $ | 42,665 | $ | 24,755 | $ | 5,723 | $ | 2,114 | $ | 981 | $ | 871 | |||||||
Ratio of earnings to fixed charges | (a) | (b) | 3.5 | (c) | (d) | (e) | |||||||||||||
- (1)
- One-third of rent expense was the proportion deemed representative of the interest factor.
- (a)
- Earnings for the six months ended June 30, 2013 were inadequate to cover fixed charges. The coverage deficiency was $22.5 million.
- (b)
- Earnings for the year ended December 31, 2012 were inadequate to cover fixed charges. The coverage deficiency was $3.4 million.
- (c)
- Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges. The coverage deficiency was $17.3 million.
- (d)
- Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges. The coverage deficiency was $12.6 million.
- (e)
- Earnings for the year ended December 31, 2008 were inadequate to cover fixed charges. The coverage deficiency was $6.4 million.
Midstates Petroleum Company, Inc. Computation of Ratio of Earnings to Fixed Charges (in thousands, except ratios)