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.