| EXHIBIT 12.1 | |
| Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||||||
| 2015 | 2014 | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||||||
| Income / (loss) before income taxes | $ | (437 | ) | $ | 1,101 | $ | (2,421 | ) | (a) | $ | 1,447 | $ | 1,181 | $ | 1,641 | $ | 1,129 | |||||||||||
| Add: | ||||||||||||||||||||||||||||
| Interest expense and amortization of debt issuance costs | 244 | — | 72 | — | — | — | — | |||||||||||||||||||||
| Portion of lease rentals representative of the interest factor | 3 | 2 | 3 | 4 | 4 | 3 | 3 | |||||||||||||||||||||
| Earnings / (loss) before fixed charges | $ | (190 | ) | $ | 1,103 | $ | (2,346 | ) | $ | 1,451 | $ | 1,185 | $ | 1,644 | $ | 1,132 | ||||||||||||
| Fixed charges: | ||||||||||||||||||||||||||||
| Interest expense and amortization of debt issuance costs, including capitalized interest | $ | 252 | $ | — | $ | 76 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
| Portion of lease rentals representative of the interest factor | 3 | 2 | 3 | 4 | 4 | 3 | 3 | |||||||||||||||||||||
| Total fixed charges | $ | 255 | $ | 2 | $ | 79 | $ | 4 | $ | 4 | $ | 3 | $ | 3 | ||||||||||||||
| Ratio of earnings to fixed charges | n/a | 552 | n/a | (b) | 363 | 296 | 548 | 377 | ||||||||||||||||||||
| Ratio of earnings to fixed charges and preferred stock dividends (c) | n/a | 552 | n/a | (b) | 363 | 296 | 548 | 377 | ||||||||||||||||||||
| Insufficient coverage | $ | 445 | $ | — | $ | 2,425 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Note: Had we been a stand-alone company for the full year 2014, and had the same level of debt throughout the year as we did on December 31, 2014, of approximately $6.4 billion, we would have incurred $314 million of pre-tax interest expense, on a pro-forma basis, for the year ended December 31, 2014, compared to the $72 million pre-tax interest expense reported on our statement of operations for the year then ended. Therefore, the insufficient coverage on a pro-forma basis would have been approximately $2,679 million. | ||
| (a) | The 2014 amount includes non-cash charges consisting of $3.4 billion of asset impairments, $52 million of rig termination and other price-related costs, and $55 million of Spin-off and transition related costs. Excluding these items, our income before income taxes for the year ended December 31, 2014 would have been approximately $1.1 billion, and the ratio of earnings to fixed charges would have been 14. | |
| (b) | Takes into consideration interest on the debt associated with the Spin-off which we entered into during the last half of 2014. | |
| (c) | We paid no preferred stock dividends during the periods presented. | |
