EXHIBIT 12.1
SM ENERGY COMPANY AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | For the Nine Months Ended September 30, | | For the Years Ended December 31, |
| | 2018 | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | (in thousands, except ratios) |
| Income (loss) before income taxes | $ | 260,017 |
| | $ | (343,813 | ) | | $ | (1,201,916 | ) | | $ | (722,861 | ) | | $ | 1,064,699 |
| | $ | 278,611 |
|
| Fixed charges | 113,138 |
| | 193,587 |
| | 167,600 |
| | 155,510 |
| | 117,147 |
| | 102,758 |
|
| Amortization of capitalized interest | 8,884 |
| | 11,623 |
| | 13,905 |
| | 9,116 |
| | 11,448 |
| | 11,784 |
|
| Capitalized interest | (15,728 | ) | | (12,607 | ) | | (17,004 | ) | | (25,051 | ) | | (16,165 | ) | | (10,952 | ) |
| Earnings before fixed charges | $ | 366,311 |
| | $ | (151,210 | ) | | $ | (1,037,415 | ) | | $ | (583,286 | ) | | $ | 1,177,129 |
| | $ | 382,201 |
|
| | | | | | | | | | | | |
| Fixed charges: | | | | | | | | | | | |
Interest expense (1) | $ | 96,128 |
| | $ | 179,257 |
| | $ | 148,685 |
| | $ | 128,149 |
| | $ | 98,554 |
| | $ | 89,711 |
|
| Capitalized interest | 15,728 |
| | 12,607 |
| | 17,004 |
| | 25,051 |
| | 16,165 |
| | 10,952 |
|
Interest expense component of rent (2) | 1,282 |
| | 1,723 |
| | 1,911 |
| | 2,310 |
| | 2,428 |
| | 2,095 |
|
| Total fixed charges | $ | 113,138 |
| | $ | 193,587 |
| | $ | 167,600 |
| | $ | 155,510 |
| | $ | 117,147 |
| | $ | 102,758 |
|
| | | |
| | | | | | | | |
| Ratio of earnings to fixed charges | 3.2 |
| | — |
| | — |
| | — |
| | 10.0 |
| | 3.7 |
|
| Insufficient coverage | $ | — |
| | $ | 344,797 |
| | $ | 1,205,015 |
| | $ | 738,796 |
| | $ | — |
| | $ | — |
|
| |
(1) | Includes amortization of deferred financing costs and debt discount. Interest expense for the nine months ended September 30, 2018, excludes the $26.7 million loss on extinguishment of debt. Interest expense for the year ended December 31, 2016, excludes the $10.0 million paid to terminate a second lien facility that was no longer necessary to fund acquisition activity. |
| |
(2) | Represents a reasonable approximation of the portion of rental expense assumed to be attributable to the interest factor. |
