EX-12.1 3 ex121ratioofearningstofixe.htm RATIO OF EARNINGS TO FIXED CHARGES Exhibit
EXHIBIT 12.1


SUMMIT MIDSTREAM PARTNERS, LP
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth our ratio of earnings to fixed charges for the periods indicated on a consolidated historical basis. For purposes of computing the ratio of earnings to fixed charges, "earnings" are defined as income before taxes plus fixed charges less capitalized interest. "Fixed charges" consist of interest expensed and capitalized, amortization of deferred loan costs and an estimate of interest within rent expense.
 
Year ended December 31,
 
2015 (1)
 
2014 (2)
 
2013
 
2012
 
2011
 
(Dollars in thousands)
Earnings:
 
 
 
 
 
 
 
 
 
(Loss) income before income taxes
$
(187,485
)
 
$
(14,103
)
 
$
53,566

 
$
43,679

 
$
38,646

Add (deduct):
 
 
 
 
 
 
 
 
 
Fixed charges
52,416

 
44,532

 
25,926

 
15,794

 
6,579

Capitalized interest
(3,137
)
 
(3,778
)
 
(6,255
)
 
(2,784
)
 
(3,362
)
Total earnings
$
(138,206
)
 
$
26,651

 
$
73,237

 
$
56,689

 
$
41,863

Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
48,616

 
$
40,159

 
$
19,173

 
$
12,766

 
$
3,054

Capitalized interest
3,137

 
3,778

 
6,255

 
2,784

 
3,362

Estimate of interest within rent expense
663

 
595

 
498

 
244

 
163

Total fixed charges
$
52,416

 
$
44,532

 
$
25,926

 
$
15,794

 
$
6,579

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges

 
0.60

 
2.82

 
3.59

 
6.36

__________
(1) The ratio of earnings to fixed charges was negative for the year ended December 31, 2015. To achieve a ratio of earnings to fixed charges of 1:1, we would have had to generate an additional $190.6 million of earnings for the year ended December 31, 2015. Loss before income taxes for the year ended December 31, 2015 included $248.9 million of goodwill impairments.
(2) The ratio of earnings to fixed charges was less than 1:1 for the year ended December 31, 2014. To achieve a ratio of earnings to fixed charges of 1:1, we would have had to generate an additional $17.9 million of earnings for the year ended December 31, 2014. Loss before income taxes for the year ended December 31, 2014 included $54.2 million of goodwill impairment.


EX12.1-1