Exhibit 12.1
RSP Permian, Inc.
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
| RSP Permian, Inc. | Predecessor | |||||||||||||||||||||||
| Six Months Ended June 30, | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2017 | 2016 (2) | 2015 (2) | 2014 (1) | 2013 | 2012 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pre-tax income (loss) | $ | 102,168 | $ | (43,557 | ) | $ | (29,937 | ) | $ | 160,304 | $ | 65,000 | $ | 35,569 | ||||||||||
Add: Loss (gain) from equity investee | $ | (676 | ) | $ | (814 | ) | $ | (8 | ) | $ | 98 | $ | — | $ | — | |||||||||
Add: Interest expense | $ | 38,732 | $ | 52,724 | $ | 43,538 | $ | 14,031 | $ | 5,216 | $ | 3,474 | ||||||||||||
Add: Estimate of interest within rental expense | $ | 179 | $ | 312 | $ | 309 | $ | 156 | $ | 83 | $ | 79 | ||||||||||||
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Total earnings | $ | 140,403 | $ | 8,665 | $ | 13,902 | $ | 174,589 | $ | 70,299 | $ | 39,122 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expense | $ | 38,732 | $ | 52,724 | $ | 43,538 | $ | 14,031 | $ | 5,216 | $ | 3,474 | ||||||||||||
Estimate of interest within rental expense | $ | 179 | $ | 312 | $ | 309 | $ | 156 | $ | 83 | $ | 79 | ||||||||||||
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Total fixed charges | $ | 38,911 | $ | 53,036 | $ | 43,847 | $ | 14,187 | $ | 5,299 | $ | 3,553 | ||||||||||||
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Ratio of earnings to Fixed Charges(2) | 3.61 | 0.16 | 0.32 | 12.31 | 13.27 | 11.01 | ||||||||||||||||||
| (1) | Represents RSP Permian, Inc.‘s predecessor‘s historical financial data for the first 22 days plus RSP Permian, Inc.‘s historical financial data for the remainder of the year. |
| (2) | Earnings in the year ended December 31, 2015 were insufficient by $29.9 million to cover fixed charges. Earnings in the year ended December 31, 2016 were insufficient by $44.4 million to cover fixed charges. |
