EXHIBIT 12.1

SM Energy Company
Ratio of Earnings to Fixed Charges

 
Year Ended December 31,
 
2011
2010
2009
2008
2007
 
(in thousands, except ratios)
 
 
 
 
 
 
Pretax income from continuing operations
$
339,001

$
314,896

$
(159,464
)
$
144,736

$
296,111

 
 
 
 
 
 
Add: Fixed charges
58,030

29,558

31,702

32,604

31,473

Add: Amortization of capitalized interest
5,107

2,991

2,697

2,387

1,768

Less: Capitalized interest
(10,785
)
(4,337
)
(1,902
)
(4,668
)
(6,672
)
     Earnings before fixed charges
$
391,353

$
343,108

$
(126,967
)
$
175,059

$
322,680

 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
     Interest expense (1)
45,849

24,196

28,856

26,950

24,046

    Capitalized interest
10,785

4,337

1,902

4,668

6,672

     Interest expense component of rent (2)
1,396

1,025

944

986

755

Total fixed charges
$
58,030

$
29,558

$
31,702

$
32,604

$
31,473

 
 
 
 
 
 
Ratio of earnings to fixed charges
6.7

11.6

—

5.4

10.3

Insufficient coverage
$
—

$
—

$
158,669

$
—

$
—


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