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Summit Midstream Partners, LP
Ratio of Earnings to Fixed Charges
| Three months ended March 31, 2017(1) | Year ended December 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016 | 2015(2) | 2014(3) | 2013 | 2012 | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
Earnings: | |||||||||||||||||||
Income (Loss) before income taxes and adjustment for income or loss from equity method investees | $ | 525 | $ | (7,768 | ) | $ | (216,268 | ) | $ | (29,802 | ) | $ | 47,737 | $ | 43,679 | ||||
Add (deduct): | |||||||||||||||||||
Fixed charges | 17,413 | 68,473 | 63,262 | 53,859 | 28,543 | 15,794 | |||||||||||||
Distributions from equity method investees | 8,944 | 44,991 | 34,641 | 2,992 | — | — | |||||||||||||
Capitalized interest | (468 | ) | (3,709 | ) | (3,372 | ) | (4,646 | ) | (6,690 | ) | (2,784 | ) | |||||||
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Total earnings | $ | 26,414 | $ | 101,987 | $ | (121,737 | ) | $ | 22,403 | $ | 69,590 | $ | 56,689 | ||||||
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Fixed Charges(4): | |||||||||||||||||||
Interest expense | $ | 16,716 | $ | 63,810 | $ | 59,092 | $ | 48,586 | $ | 21,314 | $ | 12,766 | |||||||
Capitalized interest | 468 | 3,709 | 3,372 | 4,646 | 6,690 | 2,784 | |||||||||||||
Estimate of interest within rent expense | 229 | 954 | 798 | 627 | 539 | 244 | |||||||||||||
Total fixed charges | $ | 17,413 | $ | 68,473 | $ | 63,262 | $ | 53,859 | $ | 28,543 | $ | 15,794 | |||||||
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Ratio of earnings to fixed charges | 1.52x | 1.49x | — | 0.42x | 2.44x | 3.59x |
- (1)
- The ratio of earnings to fixed charges does not include $22.0 million associated with our early extinguishment of debt relating to the redemption and call premiums on the 7.5% Senior Notes that occurred during the three months ended March 31, 2017.
- (2)
- The ratio of earnings to fixed charges was negative for the year ended December 31, 2015. To achieve a ratio of earnings to fixed charges of 1:1, we would have had to generate an additional $185.0 million of earnings for the year ended December 31, 2015. Loss before income taxes for the year ended December 31, 2015 included $248.9 million of goodwill impairments.
- (3)
- The ratio of earnings to fixed charges was less than 1:1 for the year ended December 31, 2014. To achieve a ratio of earnings to fixed charges of 1:1, we would have had to generate an additional $31.5 million of earnings for the year ended December 31, 2014. Loss before income taxes for the year ended December 31, 2014 included $54.2 million of goodwill impairment.
- (4)
- Fixed charges do not include any portion of the expense associated with our deferred purchase price obligation that we owe pursuant to the terms of that certain Contribution Agreement, dated February 25, 2016, between us and Summit Midstream Partners Holdings, LLC.