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PDC ENERGY, INC.
Statement of Computation of Ratio of Earnings to Fixed Charges
| Nine Months Ended September 30, | | Year Ended December 31, | ||||||||||||||||||||||||||||
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| 2016 | | 2015 | | 2014 | 2013 | | 2012 | | 2011 | |||||||||||||||||||||
| | | (dollars in thousands) | ||||||||||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (302,487 | ) | $ | (106,588 | ) | $ | 177,228 | $ | (32,963 | ) | $ | (30,688 | ) | $ | 35,268 | |||||||||||||||
Fixed charges (see below) | 48,633 | 55,844 | 53,512 | 54,002 | 50,228 | 40,127 | |||||||||||||||||||||||||
Amortization of capitalized interest | 2,629 | 2,486 | 1,379 | 1,096 | 871 | 675 | |||||||||||||||||||||||||
Interest capitalized | (3,477 | ) | (5,060 | ) | (3,468 | ) | (1,709 | ) | (896 | ) | (1,454 | ) | |||||||||||||||||||
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Total adjusted earnings (loss) available for fixed charges | $ | (254,702 | ) | $ | (53,318 | ) | $ | 228,651 | $ | 20,426 | $ | 19,515 | $ | 74,616 | |||||||||||||||||
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Fixed Charges: | |||||||||||||||||||||||||||||||
Interest and debt expense(a) | $ | 42,759 | $ | 47,571 | $ | 47,842 | $ | 50,143 | $ | 47,505 | $ | 36,759 | |||||||||||||||||||
Interest capitalized | 3,477 | 5,060 | 3,468 | 1,709 | 896 | 1,454 | |||||||||||||||||||||||||
Interest component of rental expense(b) | 2,397 | 3,213 | 2,202 | 2,150 | 1,827 | 1,914 | |||||||||||||||||||||||||
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Total fixed charges | $ | 48,633 | $ | 55,844 | $ | 53,512 | $ | 54,002 | $ | 50,228 | $ | 40,127 | |||||||||||||||||||
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Ratio of Earnings to Fixed Charges | — | (c) | — | (c) | 4.3x | — | (c) | — | (c) | 1.9x | |||||||||||||||||||||
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- (a)
- Represents interest expense on long-term debt, amortization of debt issuance costs and accretion of debt discount.
- (b)
- Represents the portion of rental expense which we believe represents an interest component.
- (c)
- For the nine months ended September 30, 2016 and the years ended December 31, 2015, 2013 and 2012, earnings were insufficient to cover total fixed charges by $303.3 million, $109.2 million, $33.6 million and $30.7 million, respectively.
PDC ENERGY, INC. Statement of Computation of Ratio of Earnings to Fixed Charges