EXHIBIT 12.1

SM Energy Company
Ratio of Earnings to Fixed Charges

 
Year Ended December 31,
 
2015
2014
2013
2012
2011
 
(in thousands, except ratios)
 
 
 
 
 
 
Pretax income (loss) from continuing operations
$
(722,861
)
$
1,064,699

$
278,611

$
(83,517
)
$
339,001

 
 
 
 
 
 
Add: Fixed charges
155,510

117,147

102,758

77,841

58,030

Add: Amortization of capitalized interest
9,116

11,448

11,784

9,095

5,107

Less: Capitalized interest
(25,051
)
(16,165
)
(10,952
)
(12,135
)
(10,785
)
Earnings before fixed charges
$
(583,286
)
$
1,177,129

$
382,201

$
(8,716
)
$
391,353

 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
Interest expense (1)
$
128,149

$
98,554

$
89,711

$
63,720

$
45,849

Capitalized interest
25,051

16,165

10,952

12,135

10,785

Interest expense component of rent (2)
2,310

2,428

2,095

1,986

1,396

Total fixed charges
$
155,510

$
117,147

$
102,758

$
77,841

$
58,030

 

 
 
 
 
Ratio of earnings to fixed charges
—

10.0

3.7

—

6.7

Insufficient coverage
$
738,796

$
—

$
—

$
86,557

$
—


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