EXHIBIT 12.1

SM Energy Company
Ratio of Earnings to Fixed Charges

 
Nine Months Ended September 30,
 
Year Ended December 31,
 
2015
 
2014
2013
2012
2011
2010
 
(in thousands, except ratios)
 
 
 
 
 
 
 
 
Pretax income (loss) from continuing operations
$
(185,748
)
 
$
1,064,699

$
278,611

$
(83,517
)
$
339,001

$
314,896

 
 
 
 
 
 
 
 
Add: Fixed charges
116,817

 
117,147

102,758

77,841

58,030

29,558

Add: Amortization of capitalized interest
11,207

 
11,448

11,784

9,095

5,107

2,991

Less: Capitalized interest
(18,133
)
 
(16,165
)
(10,952
)
(12,135
)
(10,785
)
(4,337
)
Earnings before fixed charges
$
(75,857
)
 
$
1,177,129

$
382,201

$
(8,716
)
$
391,353

$
343,108

 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
Interest expense (1)
$
96,583

 
$
98,554

$
89,711

$
63,720

$
45,849

$
24,196

Capitalized interest
18,133

 
16,165

10,952

12,135

10,785

4,337

Interest expense component of rent (2)
2,101

 
2,428

2,095

1,986

1,396

1,025

Total fixed charges
$
116,817

 
$
117,147

$
102,758

$
77,841

$
58,030

$
29,558

 
 
 

 
 
 
 
Ratio of earnings to fixed charges
—

 
10.0

3.7

—

6.7

11.6

Insufficient coverage
$
192,674

 
$
—

$
—

$
86,557

$
—

$
—


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