EXHIBIT 12.1

SM ENERGY COMPANY AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES

 
For the Years Ended December 31,
 
2016
 
2015
 
2014
 
2013
 
2012
 
(in thousands, except ratios)
Pre-tax income (loss) from continuing operations
$
(1,201,916
)
 
$
(722,861
)
 
$
1,064,699

 
$
278,611

 
$
(83,517
)
Add: Fixed charges
167,600

 
155,510

 
117,147

 
102,758

 
77,841

Add: Amortization of capitalized interest
13,905

 
9,116

 
11,448

 
11,784

 
9,095

Less: Capitalized interest
(17,004
)
 
(25,051
)
 
(16,165
)
 
(10,952
)
 
(12,135
)
Earnings before fixed charges
$
(1,037,415
)
 
$
(583,286
)
 
$
1,177,129

 
$
382,201

 
$
(8,716
)
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense (1)
$
148,685

 
$
128,149

 
$
98,554

 
$
89,711

 
$
63,720

Capitalized interest
17,004

 
25,051

 
16,165

 
10,952

 
12,135

Interest expense component of rent (2)
1,911

 
2,310

 
2,428

 
2,095

 
1,986

Total fixed charges
$
167,600

 
$
155,510

 
$
117,147

 
$
102,758

 
$
77,841

 

 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges

 

 
10.0

 
3.7

 

Insufficient coverage
$
1,205,015

 
$
738,796

 
$

 
$

 
$
86,557

____________________________________________
(1)
Includes amortization of deferred financing costs and discount. For the year ended December 31, 2016, excludes the $10.0 million paid to terminate a second lien facility that was no longer necessary to fund acquisition activity.
(2) 
Represents a reasonable approximation of the portion of rental expense assumed to be attributable to the interest factor.