Exhibit 12.1

Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

(Dollar Amounts in Thousands)

 

     For the years ended December 31,  
     2016     2015     2014     2013     2012  

Fixed Charges:

          

Interest expense

   $ 11,871       21,111     $ 9,772     $ 6,094     $ 9,108  

Capitalized interest

     19,857       10,459       4,295       4,410       2,109  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

     31,728       31,570       14,067       10,504       11,217  

Preferred stock dividends

     7,294       9,756       12,731       7,977       —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total combined fixed charges and preferred stock dividends

     39,022       41,326       26,798       18,481       11,217  

Earnings:

          

Pre-tax income (loss)

   $ (91,827     (201,665   $ 60,900     $ 7,391     $ 4,744  

Distributed income from Medusa Spar LLC

     —         —         —         813       1,735  

Fixed Charges

     31,728       31,570       14,067       10,504       11,217  

Less:

          

Capitalized interest

     (19,857     (10,459     (4,295     (4,410     (2,109
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (79,956     (180,554   $ 70,672     $ 14,298     $ 15,587  

Ratio of earnings to fixed charges

     (b     (a     5.02       1.36       1.39  

Ratio of earnings to combined fixed charges and preferred stock dividends

     (b     (a     2.64       0.77       1.39  

 

(a)  For the year ended December 31, 2015, the Company recorded a $208.4 million ceiling test write-down of oil and gas properties. As a result, earnings in 2015 were insufficient by $212.1 million to cover fixed charges, and by $221.9 million to cover fixed charges plus preferred stock dividends.
(b)  For the year ended December 31, 2016, the Company recorded a $95.8 million ceiling test write-down of oil and gas properties. As a result, earnings in 2016 were insufficient by $111.7 million to cover fixed charges, and by $119.0 million to cover fixed charges plus preferred stock dividends.
(c)  The Series A Preferred Stock dividend requirement was “grossed up” by the effective rate to reflect the amount of pre-tax income required.