SM Energy Company
Ratio of Earnings to Fixed Charges
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Years ended December 31, | ||||||||||||||||||
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Nine months ended September 30, 2011 |
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2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
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(in thousands, except ratios) |
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Pretax income from continuing operations |
$ | 531,269 | $ | 314,896 | $ | (159,464 | ) | $ | 151,411 | $ | 300,262 | $ | 295,321 | |||||||
Add: Fixed charges |
41,250 |
29,558 |
31,702 |
25,029 |
26,060 |
12,601 |
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Add: Amortization of capitalized interest |
3,055 | 2,991 | 2,697 | 2,349 | 1,719 | 1,022 | ||||||||||||||
Less: Capitalized interest |
(6,569 | ) | (4,337 | ) | (1,902 | ) | (3,768 | ) | (5,410 | ) | (3,465 | ) | ||||||||
Earnings before fixed charges |
$ | 569,005 | $ | 343,108 | $ | (126,967 | ) | $ | 175,021 | $ | 322,631 | $ | 305,479 | |||||||
Fixed charges: |
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Interest expense(1) |
$ | 33,636 | $ | 24,196 | $ | 28,856 | $ | 20,275 | $ | 19,895 | $ | 8,521 | ||||||||
Capitalized interest |
6,569 | 4,337 | 1,902 | 3,768 | 5,410 | 3,465 | ||||||||||||||
Interest expense component of rent(2) |
1,045 | 1,025 | 944 | 986 | 755 | 615 | ||||||||||||||
Total fixed charges |
$ | 41,250 | $ | 29,558 | $ | 31,702 | $ | 25,029 | $ | 26,060 | $ | 12,601 | ||||||||
Ratio of earnings to fixed charges |
13.8 | 11.6 | — | 7.0 | 12.4 | 24.2 | ||||||||||||||
Insufficient coverage |
$ | — | $ | — | $ | 158,669 | $ | — | $ | — | $ | — | ||||||||