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Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(In thousands, except ratios)
| Successor | | Predecessor | Successor | | Predecessor | ||||||||||||||||||||||||||
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| | Period from September 10, 2016 through September 30, 2016 | Period from January 1, 2016 through September 9, 2016 | Period from September 10, 2016 through December 31, 2016 | Period from January 1, 2016 through September 9, 2016 | | | | | |||||||||||||||||||||||
| Nine Months Ended September 30, 2017 | Year Ended December 31, | ||||||||||||||||||||||||||||||
| 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 623,816 | $ | (447,335 | ) | $ | 3,292 | $ | (474,449 | ) | $ | 3,292 | $ | (1,913,535 | ) | $ | 314,880 | $ | (1,380,378 | ) | $ | (67,066 | ) | |||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Equity investment loss (income) | (417 | ) | — | 152 | (9 | ) | 152 | 171 | (617 | ) | (97 | ) | (373 | ) | ||||||||||||||||||
Interest capitalized | — | — | (68,192 | ) | — | (68,192 | ) | (113,009 | ) | (168,897 | ) | (203,993 | ) | (53,492 | ) | |||||||||||||||||
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Income (loss) before income taxes, as adjusted | $ | 623,399 | $ | (447,335 | ) | $ | (64,748 | ) | $ | (474,458 | ) | $ | (64,748 | ) | $ | (2,026,373 | ) | $ | 145,366 | $ | (1,584,468 | ) | $ | (120,931 | ) | |||||||
Fixed charges | 67,421 | 5,552 | 197,640 | 29,013 | 197,640 | 340,399 | 320,403 | 262,046 | 86,589 | |||||||||||||||||||||||
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Total earnings | $ | 690,820 | $ | (441,783 | ) | $ | 132,892 | $ | (445,445 | ) | $ | 132,892 | $ | (1,685,974 | ) | $ | 465,769 | $ | (1,322,422 | ) | $ | (34,342 | ) | |||||||||
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Fixed charges: | ||||||||||||||||||||||||||||||||
Interest expense and amortization of finance costs | $ | 66,447 | $ | 5,428 | $ | 195,698 | $ | 28,553 | $ | 195,698 | $ | 337,554 | $ | 317,732 | $ | 259,159 | $ | 85,372 | ||||||||||||||
Rental expense representative of interest factor | 974 | 124 | 1,942 | 460 | 1,942 | 2,845 | 2,671 | 2,887 | 1,217 | |||||||||||||||||||||||
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Total fixed charges | $ | 67,421 | $ | 5,552 | $ | 197,640 | $ | 29,013 | $ | 197,640 | $ | 340,399 | $ | 320,403 | $ | 262,046 | $ | 86,589 | ||||||||||||||
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Ratio of earnings to fixed charges | 10.2 | — | (1) | — | (3) | — | (5) | — | (3) | — | (7) | 1.5 | — | (9) | — | (10) | ||||||||||||||||
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Total fixed charges | $ | 67,421 | $ | 5,552 | $ | 197,640 | $ | 29,013 | $ | 197,640 | $ | 340,399 | $ | 320,403 | $ | 262,046 | $ | 86,589 | ||||||||||||||
Pre-tax preferred dividend requirements | 47,625 | 785 | 12,320 | 783 | 12,320 | 83,942 | 32,902 | 12,132 | 110,075 | |||||||||||||||||||||||
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Total fixed charges plus preference dividends | $ | 115,046 | $ | 6,337 | $ | 209,960 | $ | 29,796 | $ | 209,960 | $ | 424,341 | $ | 353,305 | $ | 274,178 | $ | 196,664 | ||||||||||||||
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Ratio of earnings to combined fixed charges and preference dividends | 6.0 | — | (2) | — | (4) | — | (6) | — | (4) | — | (8) | 1.3 | — | (9) | — | (11) | ||||||||||||||||
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- (1)
- Due to the Company's "Loss before income taxes, as adjusted" for the period from September 10, 2016 through September 30, 2016 the ratio coverage was less than 1:1. The Company must generate additional earnings of $447.3 million to achieve a coverage ratio of 1:1.
- (2)
- Due to the Company's "Loss before income taxes, as adjusted" for the period from September 10, 2016 through September 30, 2016 the ratio coverage was less than 1:1. The Company must generate additional earnings of $448.1 million to achieve a coverage ratio of 1:1.
- (3)
- Due to the Company's "Loss before income taxes, as adjusted" for the period from January 1, 2016 through September 9, 2016 the ratio coverage was less than 1:1. The Company must generate additional earnings of $64.7 million to achieve a coverage ratio of 1:1.
- (4)
- Due to the Company's "Loss before income taxes, as adjusted" for the period from January 1, 2016 through September 9, 2016 the ratio coverage was less than 1:1. The Company must generate additional earnings of $77.1 million to achieve a coverage ratio of 1:1.
- (5)
- Due to the Company's "Loss before income taxes, as adjusted" for the period from September 10, 2016 through December 31, 2016 the ratio coverage was less than 1:1. The Company must generate additional earnings of $474.5 million to achieve a coverage ratio of 1:1.
- (6)
- Due to the Company's "Loss before income taxes, as adjusted" for the period from September 10, 2016 through December 31, 2016 the ratio coverage was less than 1:1. The Company must generate additional earnings of $475.2 million to achieve a coverage ratio of 1:1.
- (7)
- Due to the Company's "Loss before income taxes, as adjusted" for the year ended December 31, 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $2.0 billion to achieve a coverage ratio of 1:1.
- (8)
- Due to the Company's "Loss before income taxes, as adjusted" for the year ended December 31, 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $2.1 billion to achieve a coverage ratio of 1:1.
- (9)
- Due to the Company's "Loss before income taxes, as adjusted" for the year ended December 31, 2013, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.6 billion to achieve a coverage ratio of 1:1.
- (10)
- Due to the Company's "Loss before income taxes, as adjusted" for the year ended December 31, 2012, the ratio coverage was less than 1:1. The Company must generate additional earnings of $120.9 million to achieve a coverage ratio of 1:1.
- (11)
- Due to the Company's "Loss before income taxes, as adjusted" for the year ended December 31, 2012, the ratio coverage was less than 1:1. The Company must generate additional earnings of $231.0 million to achieve a coverage ratio of 1:1.
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends (In thousands, except ratios)