Exhibit 12.1
PDC ENERGY, INC.
Statement of Computation of Ratio of Earnings to Fixed Charges
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| Three Months Ended |
| Year Ended December 31, |
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| 2017 |
| 2016 |
| 2015 |
| 2014 |
| 2013 |
| 2012 |
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Earnings |
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Income (loss) from continuing operations before income taxes |
| $ | 72,476 |
| $ | (393,123 | ) | $ | (106,588 | ) | $ | 177,228 |
| $ | (32,963 | ) | $ | (30,688 | ) |
Fixed charges (see below) |
| 21,859 |
| 69,840 |
| 55,844 |
| 53,512 |
| 54,002 |
| 50,228 |
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Amortization of capitalized interest |
| 916 |
| 3,463 |
| 2,486 |
| 1,379 |
| 1,096 |
| 871 |
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Interest capitalized |
| (1,109 | ) | (4,489 | ) | (5,060 | ) | (3,468 | ) | (1,709 | ) | (896 | ) | ||||||
Total adjusted earnings (loss) available for fixed charges |
| $ | 94,142 |
| $ | (324,309 | ) | $ | (53,318 | ) | $ | 228,651 |
| $ | 20,426 |
| $ | 19,515 |
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Fixed Charges |
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Interest and debt expense (a) |
| $ | 19,467 |
| $ | 61,972 |
| $ | 47,571 |
| $ | 47,842 |
| $ | 50,143 |
| $ | 47,505 |
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Interest capitalized |
| 1,109 |
| 4,489 |
| 5,060 |
| 3,468 |
| 1,709 |
| 896 |
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Interest component of rental expense (b) |
| 1,283 |
| 3,379 |
| 3,213 |
| 2,202 |
| 2,150 |
| 1,827 |
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Total fixed charges |
| $ | 21,859 |
| $ | 69,840 |
| $ | 55,844 |
| $ | 53,512 |
| $ | 54,002 |
| $ | 50,228 |
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Ratio of Earnings to Fixed Charges |
| 4.3 | x | — | (c) | — | (c) | 4.3 | x | — | (c) | — | (c) |
(a) Represents interest expense on long-term debt and amortization of debt discount and issuance costs.
(b) Represents the portion of rental expense which we believe represents an interest component.
(c) For the years ended December 31, 2016, 2015, 2013, and 2012, earnings were insufficient to cover total fixed charges by $394.1 million, $109.2 million, $33.6 million and $30.7 million, respectively.