Exhibit 12.1
Rose Rock Midstream, L.P.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Successor | | | Predecessor | |
| | Subsequent to Emergence | | | Prior to Emergence | |
| | Six Months Ended June 30, 2014 | | | Year Ended December 31, | | | One Month Ended December 31, 2011 | | | Eleven Months Ended November 30, 2011 | | | Year Ended December 31, 2010 | | | One Month Ended December 31, 2009 | | | Eleven Months Ended November 30, 2009 | |
| | 2013 | | | 2012 | | | | | | |
Pretax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | | $ | 7,918 | | | $ | 20,434 | | | $ | 23,954 | | | $ | 2,148 | | | $ | 21,087 | | | $ | 23,477 | | | $ | 1,285 | | | $ | 132,552 | |
Add: | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | | 5,219 | | | | 9,037 | | | | 2,307 | | | | 266 | | | | 1,970 | | | | 720 | | | | 65 | | | | 1,932 | |
Amortization of capitalized interest | | | 16 | | | | 21 | | | | 6 | | | | 1 | | | | — | | | | — | | | | — | | | | — | |
Distributed earnings of equity investees | | | 28,052 | | | | 16,999 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Subtract: | | | | | | | | | | | | | | | | | | | | | | | | |
Capitalized interest | | | 119 | | | | 534 | | | | 72 | | | | 84 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income as adjusted | | $ | 41,086 | | | $ | 45,957 | | | $ | 26,195 | | | $ | 2,331 | | | $ | 23,057 | | | $ | 24,197 | | | $ | 1,350 | | | $ | 134,484 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 4,867 | | | $ | 8,100 | | | $ | 1,912 | | | $ | 155 | | | $ | 1,668 | | | $ | 482 | | | $ | 43 | | | $ | 1,699 | |
Interest capitalized | | | 119 | | | | 534 | | | | 72 | | | | 84 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 4,986 | | | | 8,634 | | | | 1,984 | | | | 239 | | | | 1,668 | | | | 482 | | | | 43 | | | | 1699 | |
Portion of rents representative of an appropriate interest factor | | | 233 | | | | 403 | | | | 323 | | | | 27 | | | | 302 | | | | 238 | | | | 22 | | | | 233 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges | | $ | 5,219 | | | $ | 9,037 | | | $ | 2,307 | | | $ | 266 | | | $ | 1,970 | | | $ | 720 | | | $ | 65 | | | $ | 1,932 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 7.9 | | | | 5.1 | | | | 11.4 | | | | 8.8 | | | | 11.7 | | | | 33.6 | | | | 20.7 | | | | 69.6 | |
On November 29, 2011, SemGroup Corporation contributed SemCrude, L.P. to Rose Rock Midstream, L.P.