EX-12.1 2 wti-ex121_8.htm EX-12.1 wti-ex121_8.htm

 

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.