Exhibit 12.1
Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollar Amounts in Thousands)
For the three months ended March 31, | For the years ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense | $ | 460 | $ | 2,159 | $ | 11,871 | $ | 21,111 | $ | 9,772 | $ | 6,094 | ||||||||||||
Capitalized interest | 10,068 | 33,783 | 19,857 | 10,459 | 4,295 | 4,410 | ||||||||||||||||||
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Total fixed charges | 10,528 | 35,942 | 31,728 | 31,570 | 14,067 | 10,504 | ||||||||||||||||||
Preferred stock dividends | 1,840 | 7,219 | 7,294 | 9,756 | 12,731 | 7,977 | ||||||||||||||||||
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Total combined fixed charges and preferred stock dividends | 12,368 | 43,161 | 39,022 | 41,326 | 26,798 | 18,481 | ||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) before income taxes | $ | 56,256 | $ | 121,697 | $ | (91,827 | ) | $ | (201,665 | ) | $ | 60,900 | $ | 7,391 | ||||||||||
Distributed income from Medusa Spar LLC | — | — | — | — | — | 813 | ||||||||||||||||||
Fixed Charges | 10,528 | 35,942 | 31,728 | 31,570 | 14,067 | 10,504 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest | (10,068 | ) | (33,783 | ) | (19,857 | ) | (10,459 | ) | (4,295 | ) | (4,410 | ) | ||||||||||||
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Total | $ | 56,716 | $ | 123,856 | $ | (79,956 | ) | $ | (180,554 | ) | $ | 70,672 | $ | 14,298 | ||||||||||
Ratio of earnings to fixed charges(a) | 5.39 | 3.45 | (b | ) | (c | ) | 5.02 | 1.36 | ||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 4.59 | 2.87 | (b | ) | (c | ) | 2.64 | 0.77 |
(a) | The ratio of earnings to fixed charges has been computed by dividing earnings available for fixed charges (earnings before income taxes plus fixed charges) by fixed charges (interest expense plus capitalized interest). |
(b) | For the year ended December 31, 2016, we recorded a $95.8 million ceiling test write-down of our oil and gas properties. As a result, earnings in 2016 were insufficient by $111.7 million to cover fixed charges, and by $119.0 million to cover fixed charges plus preferred stock dividends. |
(c) | For the year ended December 31, 2015, we recorded a $208.4 million ceiling test write-down of our oil and gas properties. As a result, earnings in 2015 were insufficient by $212.1 million to cover fixed charges, and by $221.9 million to cover fixed charges plus preferred stock dividends. |