Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth EQT Corporation’s (EQT) consolidated ratio of earnings to fixed charges for the periods indicated.
| | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | (in thousands, except ratio data) | |
Earnings | | | | | | | | | | | | | |
Income (loss) before income taxes, noncontrolling interests, discontinued operations and cumulative effect of accounting changes | | $ | 503,724 | | $ | (394,527 | ) | $ | 426,561 | | $ | 723,711 | | $ | 521,158 | | $ | 220,379 | |
Minus: equity earnings of nonconsolidated investments | | (9,388 | ) | (9,898 | ) | (2,566 | ) | (3,385 | ) | (7,615 | ) | (6,146 | ) |
Plus: distributions of income of equity investees | | — | | — | | — | | 9,463 | | 9,000 | | 12,750 | |
Plus: fixed charges | | 108,522 | | 196,874 | | 204,840 | | 191,393 | | 180,552 | | 214,820 | |
Minus: capitalized interest and allowance for borrowed funds used during construction | | (12,090 | ) | (28,828 | ) | (42,082 | ) | (40,775 | ) | (27,247 | ) | (19,613 | ) |
Total earnings | | $ | 590,768 | | $ | (236,379 | ) | $ | 586,753 | | $ | 880,407 | | $ | 675,848 | | $ | 422,190 | |
Fixed charges | | | | | | | | | | | | | |
Interest expense | | $ | 91,022 | | $ | 158,800 | | $ | 150,726 | | $ | 139,620 | | $ | 143,720 | | $ | 186,420 | |
Plus: capitalized interest and allowance for borrowed funds used during construction | | 12,090 | | 28,828 | | 42,082 | | 40,775 | | 27,247 | | 19,613 | |
Plus: estimated interest component of rental expense | | 5,410 | | 9,246 | | 12,032 | | 10,998 | | 9,585 | | 8,787 | |
Total fixed charges | | $ | 108,522 | | $ | 196,874 | | $ | 204,840 | | $ | 191,393 | | $ | 180,552 | | $ | 214,820 | |
Ratio of earnings to fixed charges | | 5.44 | | (1 | ) | 2.86 | | 4.60 | | 3.74 | | 1.97 | |
(1) Earnings for the year ended December 31, 2016 were inadequate to cover fixed charges by $433.3 million.
For purposes of calculating the ratios, earnings consist of:
· income (loss) before income taxes, noncontrolling interests, discontinued operations and cumulative effect of accounting changes;
· minus equity earnings of nonconsolidated investments;
· plus distributions of income from equity investees;
· plus fixed charges; and
· minus capitalized interest and allowance for borrowed funds used during construction.
For purposes of calculating the ratios, fixed charges consist of:
· interest on debt and amortization of debt expense;
· plus capitalized interest and allowance for borrowed funds used during construction; and
· plus the estimated interest component of rental expense.
As of the date of this Current Report on Form 8-K, EQT has not issued any shares of preferred stock.
