Exhibit 12.1
ESCALERA RESOURCES CO.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
| Six Months Ended June 30, 2014 | Year Ended December 31, | |||||||||||||||||||||||
| 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense (2) | $ | 831 | $ | 1,645 | $ | 1,069 | $ | 1,203 | $ | 1,501 | $ | 1,608 | ||||||||||||
Interest capitalized | 31 | 80 | 321 | 155 | 192 | 485 | ||||||||||||||||||
Estimated portion of rental expense which represents interest factor | 17 | 40 | 90 | 176 | 265 | 291 | ||||||||||||||||||
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Total fixed charges | $ | 879 | $ | 1,765 | $ | 1,480 | $ | 1,533 | $ | 1,958 | $ | 2,384 | ||||||||||||
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Earnings available for fixed charges: | ||||||||||||||||||||||||
Pretax income (loss) | $ | (8,337 | ) | $ | (19,733 | ) | $ | (15,745 | ) | $ | 18,449 | $ | 8,727 | $ | 2,111 | |||||||||
Add: fixed charges | 879 | 1,765 | 1,480 | 1,533 | 1,958 | 2,384 | ||||||||||||||||||
Less capitalized interest | (31 | ) | (80 | ) | (321 | ) | (155 | ) | (192 | ) | (485 | ) | ||||||||||||
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Total earnings available for fixed charges | $ | (7,489 | ) | $ | (18,048 | ) | $ | (14,586 | ) | $ | 19,827 | $ | 10,493 | $ | 4,010 | |||||||||
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Ratio of earnings to fixed charges | (1 | ) | (1 | ) | (1 | ) | 12.9 | 5.4 | 1.7 | |||||||||||||||
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| (1) | Earnings for the six months ended June 30, 2014, and the years ended December 31, 2013 and 2012 were insufficient to cover fixed charges by approximately $8,368, $19,813 and $16,066, respectively. |
| (2) | Excludes unrealized gains/losses on its interest rate swap. |
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(in thousands, except ratios)
| Six Months Ended June 30, 2014 | Year Ended December 31, | |||||||||||||||||||||||
| 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense (2) | $ | 831 | $ | 1,645 | $ | 1,069 | $ | 1,203 | $ | 1,501 | $ | 1,608 | ||||||||||||
Interest capitalized | 31 | 80 | 321 | 155 | 192 | 485 | ||||||||||||||||||
Estimated portion of rental expense which represents interest factor | 17 | 40 | 90 | 176 | 265 | 291 | ||||||||||||||||||
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Total fixed charges before preferred stock dividendspre-tax requirements | $ | 879 | $ | 1,765 | $ | 1,480 | $ | 1,533 | $ | 1,958 | $ | 2,384 | ||||||||||||
Preferred stock dividends pre-tax income requirements (3) | 1,862 | 3,723 | 3,723 | 5,878 | 5,905 | 6,497 | ||||||||||||||||||
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Total combined fixed charges and preferred stock dividends | $ | 2,741 | $ | 5,488 | $ | 5,203 | $ | 7,411 | $ | 7,862 | $ | 8,882 | ||||||||||||
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Earnings available for fixed charges: | ||||||||||||||||||||||||
Pretax income (loss) | (8,337 | ) | (19,733 | ) | (15,745 | ) | 18,449 | 8,727 | 2,111 | |||||||||||||||
Add: fixed charges | 879 | 1,765 | 1,480 | 1,533 | 1,958 | 2,384 | ||||||||||||||||||
Less capitalized interest | (31 | ) | (80 | ) | (321 | ) | (155 | ) | (192 | ) | (485 | ) | ||||||||||||
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Total Earnings available for fixed charges and preferred stock dividends | $ | (7,489 | ) | $ | (18,048 | ) | $ | (14,586 | ) | $ | 19,827 | $ | 10,493 | $ | 4,010 | |||||||||
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Ratio of earnings to fixed charges and preferred stock | (1 | ) | (1 | ) | (1 | ) | 2.7 | 1.3 | (1 | ) | ||||||||||||||
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| (1) | For the six months ended June 30, 2014, and the years ended December 31, 2013, 2012 and 2009 were insufficient to cover fixed charges and preferred stock dividends by approximately $10,230, $23,536, $19,789 and $4,872, respectively. |
| (2) | Excludes unrealized gains/losses on our interest rate swap. |
| (3) | The Series A Preferred Stock dividend requirement was “grossed up” by the effective tax rate to reflect the amount of pre-tax income required for the years ended December 31, 2011, 2010 and 2009. The effective tax rate for the years ended December 31, 2011, 2010 and 2009 was 36.66%, 36.95% and 42.7%, respectively. |
