EP Energy (EPEGQ) 10-Q 2016 Q1 Quarterly report

Exhibit 12.1

EP ENERGY CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions)

	Successor																		Predecessor
	Three Months Ended March 31,						Years Ended December 31,									February 14 to December 31,			January 1 to May 24,			Year Ended December 31,
	2016			2015			2015			2014			2013			2012			2012			2011
Earnings
Income (loss) from continuing operations before income taxes	$	94		$	29		$	(4,326	)	$	1,159		$	8		$	(306	)	$	321		$	628
Loss from equity investees	—			—			—			—			12			2			5			7
Income (loss) before income taxes before adjustment for loss from equity investees	94			29			(4,326		)	1,159			20			(304		)	326			635
Fixed charges	86			89			346			341			375			232			18			25
Distributed income of equity investees	—			—			—			—			24			14			8			46
Capitalized interest	(2		)	(4		)	(14		)	(21		)	(19		)	(12		)	(4		)	(10		)
Total earnings available for fixed charges	$	178		$	114		$	(3,994	)	$	1,479		$	400		$	(70	)	$	348		$	696
Fixed charges
Interest and debt expense	$	86		$	88		$	344		$	339		$	373		$	231		$	18		$	25
Interest component of rent	—			1			2			2			2			1			—			—
Total fixed charges	$	86		$	89		$	346		$	341		$	375		$	232		$	18		$	25
Ratio of earnings to fixed charges(1)	2.07x			1.28x			—			4.35x			1.07x			—			19.33x			27.84x

(1) Earnings for the year ended December 31, 2015 were inadequate to cover fixed charges by $4,340 million, due to non-cash impairment charges of approximately $4.3 billion associated with proved and unproved oil and natural gas properties related to a decline in commodity prices. Earnings for the period from February 14 to December 31, 2012 were inadequate to cover fixed charges by $302 million.

For purposes of computing these ratios, earnings means income (loss) from continuing operations before income taxes before income or loss from equity investees, adjusted to reflect actual distributions from equity investments and fixed charges less capitalized interest.  Fixed charges means the sum of interest costs (not including interest on tax liabilities which is included in income tax expense on our income statement), amortization of debt costs and that portion of rental expense we believe reflects a reasonable approximation of the interest component of rent expense.