EX-12.1 8 exhibit121-2013.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1 - 2013

Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
 
(dollars in thousands)
 
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes and adjustment for income (loss) from equity investees
$
(693,536
)
 
$
(383,826
)
 
$
443,905

 
$
(110,047
)
 
$
(300,062
)
 
(Income) loss from equity investees
(969
)
 
(1,497
)
 
188

 
(10
)
 
—

 
Income (loss) from continuing operations before income taxes but after adjustment for (income) loss from equity investees
(694,505
)
 
(385,323
)
 
444,093

 
(110,057
)
 
(300,062
)
 
Fixed charges
423,662

 
382,751

 
261,976

 
194,733

 
93,280

 
Distributed income of equity investees
300

 
1,265

 
900

 
854

 
—

 
Capitalized interest
(2,060
)
 
(2,326
)
 
(1,868
)
 
(884
)
 
(324
)
 
Total earnings available for fixed charges
$
(272,603
)
 
$
(3,633
)
 
$
705,101

 
$
84,646

 
$
(207,106
)
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest and debt expenses
$
421,137

 
$
379,937

 
$
259,725

 
$
193,510

 
$
92,701

 
Capitalized interest
2,060

 
2,326

 
1,868

 
884

 
324

 
Interest portion of rental expense
465

 
488

 
383

 
339

 
255

 
Total fixed charges
$
423,662

 
$
382,751

 
$
261,976

 
$
194,733

 
$
93,280

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
—

(1) 
—

(1) 
2.69

 
—

(1) 
—

(1) 
(1) 
Earnings for the year ended December 31, 2013, were insufficient to cover fixed charges by approximately $696 million, primarily due to noncash impairment charges of approximately $791 million associated with proved oil and natural gas properties in the Granite Wash formation related to asset performance resulting in reserve revisions and a decline in commodity prices as well as approximately $37 million associated with the write-down of the carrying value of the Panther Operated Cleveland Properties sold in May 2013. Earnings for the year ended December 31, 2012, were insufficient to cover fixed charges by approximately $386 million, primarily due to noncash impairment charges of approximately $422 million associated with proved oil and natural gas properties related to the SEC five-year development limitation on PUDs and a decline in commodity prices and approximately $278 million associated with changes in fair value on unsettled derivative contracts.  Earnings for the years ended December 31, 2010, and December 31, 2009, were insufficient to cover fixed charges by approximately $110 million and $300 million, respectively, primarily due to approximately $232 million and $591 million, respectively, associated with changes in fair value on unsettled derivative contracts.