EX-12.1 7 d612391dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Legacy Reserves Inc.

Computation of Ratios of Earnings to Fixed Charges

(In thousands, except ratios)

 

     Six Months Ended
June 30,
2018		     Years Ended December 31,  
    2017     2016     2015     2014     2013  

Income (loss) before income taxes

    $ 14,290     $ (52,499 )    $ (54,591 )    $ (703,039 )    $ (284,504 )    $ (34,623 ) 

Equity in (income) loss of equity method investee

      (20 )      (17 )      —         (126 )      (428 )      (559 ) 

Distributed income of equity method investee

      —         —         —         191       1,467       861  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations before income taxes

    $ 14,270     $ (52,516 )    $ (54,591 )    $ (702,974 )    $ (283,465 )    $ (34,321 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges

             

Interest expensed

    $ 50,601     $ 83,485     $ 73,209     $ 73,075     $ 65,260     $ 51,097  

Amortization of debt issuance costs

      6,322       7,656       6,396       5,533       4,637       3,780  

Estimated portion of rental expense attributable to interest

      228       448       445       410       259       231  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 57,151     $ 91,589     $ 80,050     $ 79,018     $ 70,156     $ 55,108  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges

    $ 71,421     $ 39,073     $ 25,459     $ (623,956 )    $ (213,309 )    $ 20,787  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      1.25x       (1 )      (2 )      (3 )      (4 )      (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 57,151     $ 91,589     $ 80,050     $ 79,018     $ 70,156     $ 55,108  

Preferred distributions

      9,500       19,000       19,000       19,000       11,694       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges including preferred distributions

    $ 66,651     $ 110,589     $ 99,050     $ 98,018     $ 81,850     $ 55,108  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges and preferred distributions

      1.07x       (1 )      (2 )      (3 )      (4 )      (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $52.5 million and $71.5 million, respectively

(2)

Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $54.6 million and $73.6 million, respectively

(3)

Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $703.0 million and $722.0 million, respectively

(4)

Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $283.5 million and $295.2 million, respectively

(5)

Earnings were insufficient to cover fixed charges, and fixed charges exceeded earnings by approximately $34.3 million