Exhibit 12.1
Legacy Reserves Inc.
Computation of Ratios of Earnings to Fixed Charges
(In thousands, except ratios)
| Six Months Ended June 30, 2018 | Years Ended December 31, | |||||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Income (loss) before income taxes | $ | 14,290 | $ | (52,499 | ) | $ | (54,591 | ) | $ | (703,039 | ) | $ | (284,504 | ) | $ | (34,623 | ) | |||||||
Equity in (income) loss of equity method investee | (20 | ) | (17 | ) | — | (126 | ) | (428 | ) | (559 | ) | |||||||||||||
Distributed income of equity method investee | — | — | — | 191 | 1,467 | 861 | ||||||||||||||||||
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Income (loss) from operations before income taxes | $ | 14,270 | $ | (52,516 | ) | $ | (54,591 | ) | $ | (702,974 | ) | $ | (283,465 | ) | $ | (34,321 | ) | |||||||
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Fixed Charges | ||||||||||||||||||||||||
Interest expensed | $ | 50,601 | $ | 83,485 | $ | 73,209 | $ | 73,075 | $ | 65,260 | $ | 51,097 | ||||||||||||
Amortization of debt issuance costs | 6,322 | 7,656 | 6,396 | 5,533 | 4,637 | 3,780 | ||||||||||||||||||
Estimated portion of rental expense attributable to interest | 228 | 448 | 445 | 410 | 259 | 231 | ||||||||||||||||||
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Total fixed charges | $ | 57,151 | $ | 91,589 | $ | 80,050 | $ | 79,018 | $ | 70,156 | $ | 55,108 | ||||||||||||
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Earnings available for fixed charges | $ | 71,421 | $ | 39,073 | $ | 25,459 | $ | (623,956 | ) | $ | (213,309 | ) | $ | 20,787 | ||||||||||
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Ratio of earnings to fixed charges | 1.25x | (1 | ) | (2 | ) | (3 | ) | (4 | ) | (5 | ) | |||||||||||||
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Total fixed charges | $ | 57,151 | $ | 91,589 | $ | 80,050 | $ | 79,018 | $ | 70,156 | $ | 55,108 | ||||||||||||
Preferred distributions | 9,500 | 19,000 | 19,000 | 19,000 | 11,694 | — | ||||||||||||||||||
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Total fixed charges including preferred distributions | $ | 66,651 | $ | 110,589 | $ | 99,050 | $ | 98,018 | $ | 81,850 | $ | 55,108 | ||||||||||||
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Ratio of earnings to fixed charges and preferred distributions | 1.07x | (1 | ) | (2 | ) | (3 | ) | (4 | ) | (5 | ) | |||||||||||||
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| (1) | Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $52.5 million and $71.5 million, respectively |
| (2) | Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $54.6 million and $73.6 million, respectively |
| (3) | Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $703.0 million and $722.0 million, respectively |
| (4) | Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $283.5 million and $295.2 million, respectively |
| (5) | Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $34.3 million |