Exhibit 12.1
SM Energy Company
Ratio of Earnings to Fixed Charges
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For the Year Ended December 31, | |||||||||||||||||
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For the Six Months Ended June 30, 2012 |
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2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||
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(in thousands, except ratios) |
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Pretax income from continuing operations |
$ | 81,701 | $ | 339,001 | $ | 314,896 | $ | (159,464 | ) | $ | 144,736 | $ | 296,111 | ||||||
Add: Fixed charges |
34,898 | 58,030 | 29,558 | 31,702 | 32,604 | 31,473 | |||||||||||||
Add: Amortization of capitalized interest |
3,974 | 5,107 | 2,991 | 2,697 | 2,387 | 1,768 | |||||||||||||
Less: Capitalized interest |
(6,889 | ) | (10,785 | ) | (4,337 | ) | (1,902 | ) | (4,668 | ) | (6,672 | ) | |||||||
Earnings before fixed charges |
$ | 113,684 | $ | 391,353 | $ | 343,108 | $ | (126,967 | ) | $ | 175,059 | $ | 322,680 | ||||||
Fixed charges: |
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Interest expense(1) |
$ | 26,990 | $ | 45,849 | $ | 24,196 | $ | 28,856 | $ | 26,950 | $ | 24,046 | |||||||
Capitalized interest |
6,889 | 10,785 | 4,337 | 1,902 | 4,668 | 6,672 | |||||||||||||
Interest expense component of rent(2) |
1,019 | 1,396 | 1,025 | 944 | 986 | 755 | |||||||||||||
Total fixed charges |
$ | 34,898 | $ | 58,030 | $ | 29,558 | $ | 31,702 | $ | 32,604 | $ | 31,473 | |||||||
Ratio of earnings to fixed charges |
3.3 | 6.7 | 11.6 | — | 5.4 | 10.3 | |||||||||||||
Insufficient coverage |
$ | — | $ | — | $ | — | $ | 158,669 | $ | — | $ | — | |||||||