EXHIBIT 12.1

SM Energy Company
Ratio of Earnings to Fixed Charges

 
Six Months Ended June 30,
 
Year Ended December 31,
 
2016
 
2015
2014
2013
2012
2011
 
(in thousands, except ratios)
 
 
 
 
 
 
 
 
Pretax income (loss) from continuing operations
$
(806,664
)
 
$
(722,861
)
$
1,064,699

$
278,611

$
(83,517
)
$
339,001

 
 
 
 
 
 
 
 
Add: Fixed charges
76,487

 
155,510

117,147

102,758

77,841

58,030

Add: Amortization of capitalized interest
6,219

 
9,116

11,448

11,784

9,095

5,107

Less: Capitalized interest
(10,312
)
 
(25,051
)
(16,165
)
(10,952
)
(12,135
)
(10,785
)
Earnings before fixed charges
$
(734,270
)
 
$
(583,286
)
$
1,177,129

$
382,201

$
(8,716
)
$
391,353

 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
Interest expense (1)
$
65,123

 
$
128,149

$
98,554

$
89,711

$
63,720

$
45,849

Capitalized interest
10,312

 
25,051

16,165

10,952

12,135

10,785

Interest expense component of rent (2)
1,052

 
2,310

2,428

2,095

1,986

1,396

Total fixed charges
$
76,487

 
$
155,510

$
117,147

$
102,758

$
77,841

$
58,030

 
 
 

 
 
 
 
Ratio of earnings to fixed charges
—

 
—

10.0

3.7

—

6.7

Insufficient coverage
$
810,757

 
$
738,796

$
—

$
—

$
86,557

$
—


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