EX-12.1 2 rosehillresources-computat.htm EXHIBIT 12.1 Exhibit
Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges and Fixed Charges and Preferred Dividends

 
Six Months
Ended
 
Year Ended December 31,
(in thousands, except ratios)
June 30, 2018
 
2017
 
2016
 
2015
 
2014
Loss before income taxes
(16,492
)
 
$
(10,258
)
 
$
(15,041
)
 
$
(14,712
)
 
$
(19,253
)
Interest expense
8,528

 
2,529

 
1,818

 
3,240

 
5,466

Rental expense attributable to interest
1

 
3

 
4

 
5

 
3

Earnings
$
(7,963
)
 
$
(7,726
)
 
$
(13,219
)
 
$
(11,467
)
 
$
(13,784
)
 
 
 
 
 
 
 
 
 
 
Interest expense
$
8,528

 
$
2,529

 
$
1,818

 
$
3,240

 
$
5,466

Capitalized interest

 

 

 

 

Rental expense attributable to interests
1

 
3

 
4

 
5

 
3

Fixed charges
$
8,529

 
$
2,532

 
$
1,822

 
$
3,245

 
$
5,469

 
 
 
 
 
 
 
 
 
 
Preferred dividend – cash
$
6,451

 
$
975

 
$

 
$

 
$

Preferred dividend – paid-in-kind
4,954

 
6,156

 

 

 

Preferred dividend – deemed
4,068

 
8,252

 

 

 

Preferred stock dividends
$
15,473

 
$
15,383

 
$

 
$

 
$

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (a)
(c)

 
(c)

 
(c)

 
(c)

 
(c)

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges and preferred stock dividends (b)
(d)

 
(d)

 
(d)

 
(d)

 
(d)

    
(a)
The ratio has been computed by dividing earnings by fixed charges. For purposes of computing the ratio:
earnings include income (loss) before income taxes, adjusted for interest expense and the portion of rental expense deemed to be representative of interest; and
fixed charges consist of interest expense, capitalized interest and the portion of rental expense deemed to be representative of interest.

(b)
The ratio has been computed by dividing earnings by fixed charges and preferred stock dividends. For purposes of computing the ratio:
earnings include income (loss) before income taxes, adjusted for interest expense and the portion of rental expense deemed to be representative of interest; and
fixed charges and preferred stock dividends consist of interest expense, capitalized interest, the portion of rental expense deemed to be representative of interest and preferred stock dividends.

(c)
Due to Rosehill Operating’s loss before income taxes for the six months ended June 30, 2018 and year ended December 31, 2017, 2016, 2015 and 2014, the ratio coverage was less than 1:1. To achieve ratio coverage of 1:1, the Company would have needed additional earnings of approximately $16.5 million for the six months ended June 30, 2018 and $10.3 million, $15.0 million, $14.7 million and $19.3 million for the year ended December 31, 2017, 2016, 2015 and 2014, respectively.

(d)
Due to Rosehill Operating’s loss before income taxes for the six months ended June 30, 2018 and year ended December 31, 2017, 2016, 2015 and 2014, the ratio coverage was less than 1:1. To achieve ratio coverage of 1:1, the Company would have needed additional earnings of approximately $31.9 million for the six months ended June 30, 2018 and $25.6 million, $15.0 million, $14.7 million and $19.3 million for the year ended December 31, 2017, 2016, 2015 and 2014, respectively.