Exhibit 12.1
Jagged Peak Energy Inc.
Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
Nine Months Ended | Year Ended December 31, | ||||||||||||||
September 30, 2017 | 2016 | 2015 | 2014 | ||||||||||||
Earnings | |||||||||||||||
Income (loss) before income taxes | $ | (363,658 | ) | $ | (9,760 | ) | $ | (7,484 | ) | $ | 1,321 | ||||
Add: Fixed charges | 2,113 | 3,109 | 498 | 232 | |||||||||||
Add: Amortization of capitalized interest | 30 | 14 | 1 | — | |||||||||||
Less: Capitalized interest | (135 | ) | (145 | ) | (33 | ) | — | ||||||||
Total earnings (loss) | $ | (361,650 | ) | $ | (6,782 | ) | $ | (7,018 | ) | $ | 1,553 | ||||
Fixed charges | |||||||||||||||
Interest expense | $ | 1,610 | $ | 2,628 | $ | 198 | $ | — | |||||||
Capitalized interest | 135 | 145 | 33 | — | |||||||||||
Rental expense attributable to interest | 368 | 336 | 267 | 232 | |||||||||||
Total fixed charges | $ | 2,113 | $ | 3,109 | $ | 498 | $ | 232 | |||||||
Ratio of earnings (loss) to fixed charges (1) | — | — | — | 6.7 |
(1) | Due to our pre-tax loss for the nine months ended September 30, 2017, and the years ended December 31, 2016 and 2015, the ratio coverage was less than 1:1. We would have needed additional earnings of $363.8 million, $9.9 million and $7.5 million, respectively, to achieve a coverage of 1:1. |