Exhibit 12.1
RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
ENERGY XXI LTD
For purposes of computing the ratio of earnings to fixed charges, earnings (loss) is defined as pre-tax income (loss) before loss from equity investees plus fixed charges. Fixed charges consist of interest expense and amortization of deferred financing fees.
| Year Ended June 30, | ||||||||||||||||||||
| 2015 | 2014 (Restated) | 2013 (Restated) | 2012 (Restated) | 2011 (Restated) | ||||||||||||||||
| (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||
| Earnings: | ||||||||||||||||||||
| Pre-tax income (loss) before loss from equity investees | $ | (3,030,223 | ) | $ | 58,376 | $ | 219,387 | $ | 585,347 | $ | (52,141 | ) | ||||||||
| Fixed Charges | 323,308 | 162,728 | 108,659 | 108,882 | 106,479 | |||||||||||||||
| Total Earnings (loss) | (2,692,357 | ) | 254,791 | 342,071 | 710,156 | 70,957 | ||||||||||||||
| Fixed Charges: | ||||||||||||||||||||
| Interest expense | $ | 300,061 | $ | 149,795 | $ | 101,761 | $ | 101,323 | $ | 95,778 | ||||||||||
| Deferred financing fees | 23,247 | 12,933 | 6,898 | 7,559 | 10,701 | |||||||||||||||
| Total Fixed Charges | $ | 323,308 | $ | 162,728 | $ | 108,659 | $ | 108,882 | $ | 106,479 | ||||||||||
| Ratio of Earnings (Loss) to Fixed Charges(1) | — | 1.36 | x | 3.02 | x | 6.38 | x | 0.51 | x | |||||||||||
(1) For the year ended June 30, 2015, earnings were inadequate to cover fixed charges and therefore the ratio has not been presented for this period. The coverage deficiency necessary for the ratio of earnings (loss) to fixed charges to equal 1.00x was approximately $3,030.2 million.
RATIO OF EARNINGS (LOSS) TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS
ENERGY XXI LTD
For purposes of computing the ratio of earnings to combined fixed charges and preference dividends, earnings (loss) is defined as pre-tax income (loss) before loss from equity investees plus fixed charges less preference dividends. Fixed charges consist of interest expense, amortization of deferred financing fees and preference dividends.
| Year Ended June 30, | ||||||||||||||||||||
| 2015 | 2014 (Restated) | 2013 (Restated) | 2012 (Restated) | 2011 (Restated) | ||||||||||||||||
| (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||
| Earnings: | ||||||||||||||||||||
| Pre-tax income (loss) before loss from equity investees | $ | (3,030,223 | ) | $ | 58,376 | $ | 219,387 | $ | 585,347 | $ | (52,141 | ) | ||||||||
| Fixed Charges | 337,666 | 196,415 | 122,684 | 124,809 | 123,098 | |||||||||||||||
| (2,692,357 | ) | 254,791 | 342,071 | 710,156 | 70,957 | |||||||||||||||
| Less: Preference security dividend requirement | (14,358 | ) | (33,687 | ) | (14,025 | ) | (15,927 | ) | (16,619 | ) | ||||||||||
| Total Earnings (loss) | $ | (2,706,715 | ) | $ | 221,104 | $ | 328,046 | $ | 694,229 | $ | 54,338 | |||||||||
| Fixed Charges: | ||||||||||||||||||||
| Interest expense | $ | 300,061 | $ | 149,795 | $ | 101,761 | $ | 101,323 | $ | 95,778 | ||||||||||
| Preference security dividend requirement | 14,358 | 33,687 | 14,025 | 15,927 | 16,619 | |||||||||||||||
| Deferred financing fees | 23,247 | 12,933 | 6,898 | 7,559 | 10,701 | |||||||||||||||
| Total Fixed Charges | $ | 337,666 | $ | 196,415 | $ | 122,684 | $ | 124,809 | $ | 123,098 | ||||||||||
| Ratio of Earnings (Loss) to Combined Fixed Charges and Preference Dividends(1) | — | 1.13 | x | 2.67 | x | 5.56 | x | 0.44 | x | |||||||||||
(1) For the year ended June 30, 2015, earnings were inadequate to cover fixed charges and therefore the ratio has not been presented for this period. The coverage deficiency necessary for the ratio of earnings (loss) to combined fixed charges and preference dividends to equal 1.00x was approximately $3,044.4 million.
The ratios of earnings (loss) to fixed charges and earnings (loss) to combined fixed charges and preference dividends for the fiscal years ended June 30, 2014, 2013, 2012, and 2011 were calculated based upon the restated financial statements reflected in the Annual Report on Form 10-K for the year ended June 30, 2015, which is incorporated by reference in this Prospectus.