EP Energy (EPEGQ) 10-Q 2017 Q2 Quarterly report

Exhibit 12.1

EP ENERGY CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions)

	Successor																		Predecessor
	Six Months Ended June 30,						Years Ended December 31,												February 14 to December 31,			January 1 to May 24,
	2017			2016			2016			2015			2014			2013			2012			2012
Earnings
(Loss) income from continuing operations before income taxes	$	(55	)	$	156		$	(26	)	$	(4,326	)	$	1,159		$	8		$	(306	)	$	321
Loss from equity investees	—			—			—			—			—			12			2			5
(Loss) income before income taxes before adjustment for loss from equity investees	(55		)	156			(26		)	(4,326		)	1,159			20			(304		)	326
Fixed charges	167			160			318			346			341			375			232			18
Distributed income of equity investees	—			—			—			—			—			24			14			8
Capitalized interest	(2		)	(2		)	(4		)	(14		)	(21		)	(19		)	(12		)	(4		)
Total earnings available for fixed charges	$	110		$	314		$	288		$	(3,994	)	$	1,479		$	400		$	(70	)	$	348
Fixed charges
Interest and debt expense	$	167		$	159		$	316		$	344		$	339		$	373		$	231		$	18
Interest component of rent	—			1			2			2			2			2			1			—
Total fixed charges	$	167		$	160		$	318		$	346		$	341		$	375		$	232		$	18
Ratio of earnings to fixed charges(1)	—			1.97x			—			—			4.35x			1.07x			—			19.33x

(1) Earnings for the six months ended June 30, 2017 and the year ended December 31, 2016 were inadequate to cover fixed charges by $57 million and $30 million, respectively. 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.