EX-12.1 3 d571349dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

W&T Offshore, Inc.

Ratio of Earnings to Fixed Charges

The following table sets forth our ratios of consolidated earnings to fixed charges for the periods presented:

 

     Year Ended December 31,  
     2017      2016     2015     2014     2013  
     (in thousands except ratios)  
     (unaudited)  

Income (loss) before income taxes

    $ 67,113      $ (292,396 )    $ (1,247,702 )    $ (16,120 )    $ 80,096  

Add: Fixed charges

      46,091        93,063       104,870       87,193       85,902  

Add: Amortization of capitalized interest

      —          5,207       40,158       4,538       4,380  

Less: Capitalized Interest

      —          (520 )      (7,256 )      (8,526 )      (10,058 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Earnings before fixed charges

    $ 113,204      $ (194,646 )    $ (1,109,930 )    $ 67,085     $ 160,320  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

            

Interest expense, net of capitalized interest

    $ 45,836      $ 92,271     $ 97,336     $ 78,396     $ 75,581  

Capitalized interest

      —          520       7,256       8,526       10,058  

Portion of rental expense representative of an interest factor

      255        272       278       271       263  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 46,091      $ 93,063     $ 104,870     $ 87,193     $ 85,902  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      2.5        N/A (1)      N/A (2)      N/A (3)      1.9  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) The ratio was not meaningful. Earnings were inadequate to cover fixed charges for the year ended December 31, 2016 by $287.7 million, which included a ceiling test write-down of oil and gas properties of $279.1 million and a gain on exchange of debt of $123.9 million.
(2) The ratio was not meaningful. Earnings were inadequate to cover fixed charges for the year ended December 31, 2015 by $1,214.8 million, which included a ceiling test write-down of oil and gas properties of $987.2 million.
(3) The ratio was less than one-to-one coverage. Earnings were inadequate to cover fixed charges for the year ended December 31, 2014 by $20.1 million.