EX-12.1 5 exhibit121-ratioofearnings.htm EXHIBIT 12.1 Exhibit 12.1 - Ratio of Earnings to Fixed Charges 12.31.13


EXHIBIT 12.1

SM Energy Company
Ratio of Earnings to Fixed Charges

 
Year Ended December 31,
 
2013
2012
2011
2010
2009
 
(in thousands, except ratios)
 
 
 
 
 
 
Pretax income from continuing operations
$
278,611

$
(83,517
)
$
339,001

$
314,896

$
(159,464
)
 
 
 
 
 
 
Add: Fixed charges
102,758

77,841

58,030

29,558

31,702

Add: Amortization of capitalized interest
11,784

9,095

5,107

2,991

2,697

Less: Capitalized interest
(10,952
)
(12,135
)
(10,785
)
(4,337
)
(1,902
)
Earnings before fixed charges
$
382,201

$
(8,716
)
$
391,353

$
343,108

$
(126,967
)
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
Interest expense (1)
89,711

63,720

45,849

24,196

28,856

Capitalized interest
10,952

12,135

10,785

4,337

1,902

Interest expense component of rent (2)
2,095

1,986

1,396

1,025

944

Total fixed charges
$
102,758

$
77,841

$
58,030

$
29,558

$
31,702

 
 
 
 
 
 
Ratio of earnings to fixed charges
3.7

—

6.7

11.6

—

Insufficient coverage
$
—

$
86,557

$
—

$
—

$
158,669


(1) Includes amortization of discount and deferred financing costs.
(2) Represents a reasonable approximation of the rental factor.