EX-12.1 5 a13-15247_1ex12d1.htm EX-12.1

Exhibit 12.1

 

Midstates Petroleum Company, Inc.

Computation of Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preference Dividends
to Earnings

(in thousands, except ratios)

 

 

 

Three

 

 

 

 

 

 

 

 

 

 

 

 

 

Months

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

Year Ended December 31,

 

 

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

Earnings available before fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss)

 

(12,922

)

7,789

 

16,657

 

(15,635

)

(11,752

)

(6,422

)

Add: Fixed charges

 

18,036

 

24,755

 

5,723

 

2,114

 

981

 

871

 

Total additive items

 

5,114

 

32,544

 

22,380

 

(13,521

)

(10,771

)

(5,551

)

Less: Capitalized interest

 

(7,054

)

(11,175

)

(2,600

)

(1,654

)

(830

)

—

 

Total earnings available for fixed charges

 

$

(1,940

)

$

21,369

 

$

19,780

 

$

(15,175

)

$

(11,601

)

$

(5,551

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed

 

$

9,883

 

$

11,711

 

$

2,094

 

$

—

 

$

—

 

$

854

 

Interest capitalized

 

7,054

 

11,175

 

2,600

 

1,654

 

830

 

—

 

Amortized premiums, discounts and capitalized expenses related to indebtedness

 

984

 

1,529

 

850

 

314

 

41

 

—

 

Portion of rental expense which represents interest factor (1)

 

115

 

340

 

179

 

146

 

110

 

17

 

Total Fixed Charges

 

$

18,036

 

$

24,755

 

$

5,723

 

$

2,114

 

$

981

 

$

871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

(b)

 

(c)

 

3.5

 

(d)

 

(e)

 

(f)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

18,036

 

$

24,755

 

$

5,723

 

$

2,114

 

$

981

 

$

871

 

Pre-tax preferred dividends (a)

 

6,803

 

10,844

 

—

 

—

 

—

 

—

 

Total fixed charges plus preferred dividends

 

$

24,839

 

$

35,599

 

$

5,723

 

$

2,114

 

$

981

 

$

871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred dividends

 

(b)

 

(c)

 

3.5

 

(d)

 

(e)

 

(f)

 

 

(1)         One-third of rent expense was the proportion deemed representative of the interest factor.

 

(a)         Prior to October 1, 2012, the Company did not have any preferred stock outstanding.  Preferred dividends shown herein relate to the Company’s Series A Mandatorily Convertible Preferred Stock (“Series A Preferred Stock”) issued on October 1, 2012, which allows, at the Company’s option, for the 8% annual dividend payment to be made either in cash or through an adjustment to the Series A Preferred Stock liquidation preference.  Pre-tax preferred stock dividend amounts for the three months ended March 31, 2013 and the year ended December 31, 2012 were calculated utilizing the Company’s effective tax rate for the applicable periods (39.5% for March 31, 2013 and 40.1% for the year ended December 31, 2012) and represent the notional dividend amount as though paid in cash, rather than through an adjustment to the Series A Preferred Stock liquidation preference.

 

(b)         Earnings for the three months ended March 31, 2013 were inadequate to cover fixed charges and combined fixed charges and preferred dividends.  The coverage deficiency was $20.0 million and $26.8 million, respectively.

 

(c)          Earnings for the year ended December 31, 2012 were inadequate to cover fixed charges and combined fixed charges and preferred dividends.  The coverage deficiency was $3.4 million and $14.2 million, respectively.

 

(d)         Earnings for the year ended December 31, 2010 were inadequate to cover fixed charges and combined fixed charges and preferred dividends.  The coverage deficiency was $17.3 million and $17.3 million, respectively.

 

(e)          Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges and combined fixed charges and preferred dividends.  The coverage deficiency was $12.6 million and $12.6 million, respectively.

 

(f)           Earnings for the year ended December 31, 2008 were inadequate to cover fixed charges and combined fixed charges and preferred dividends.  The coverage deficiency was $6.4 million and $6.4 million, respectively.