EXHIBIT 12.1

 

MIDSTATES PETROLEUM COMPANY, INC.

RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND

PREFERRED DIVIDENDS

 

(In thousands, except ratios)

 

 

 

Successor

 

 

Predecessor

 

 

 

Year Ended
December 31,

 

For the Period
October 21, 2016
through 
December 31,

 

 

For the Period
January 1, 2016
through 
October 20,

 

Year Ended December 31,

 

 

 

2018

 

2017

 

2016

 

 

2016

 

2015

 

2014

 

Earnings available before fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss)

 

$

49,784

 

$

(85,077

)

$

9,930

 

 

$

1,323,079

 

$

(1,806,836

)

$

123,324

 

Interest expense (Predecessor Period excludes interest expense of $89.5 million on senior and secured notes)

 

4,490

 

7,647

 

1,409

 

 

61,773

 

151,832

 

129,691

 

Amortization of capitalized interest

 

218

 

780

 

15

 

 

 

23,960

 

4,961

 

Loan cost amortization

 

476

 

385

 

63

 

 

4,587

 

11,316

 

7,857

 

Portion of rental expense which represents interest factor

 

193

 

189

 

41

 

 

699

 

699

 

698

 

Total earnings available for fixed charges

 

$

55,161

 

$

(76,076

)

$

11,458

 

 

$

1,390,138

 

$

(1,619,029

)

$

266,531

 

Interest expense (Predecessor Period excludes interest expense of $89.5 million on senior and secured notes)

 

$

4,490

 

$

7,647

 

$

1,409

 

 

$

61,773

 

$

151,832

 

$

129,691

 

Capitalized interest

 

466

 

2,440

 

728

 

 

 

4,859

 

12,415

 

Loan cost amortization

 

476

 

385

 

63

 

 

4,587

 

11,316

 

7,857

 

Portion of rental expense which represents interest factor

 

193

 

189

 

41

 

 

699

 

699

 

698

 

Total fixed charges

 

$

5,625

 

$

10,661

 

$

2,241

 

 

$

67,059

 

$

168,706

 

$

150,661

 

Ratio of earnings to fixed charges

 

9.8x

 

 

5.1x

 

 

20.7x

 

 

1.8x

 

Insufficient coverage

 

$

 

$

86,737

 

$

 

 

$

 

$

1,787,735

 

$

 

Total fixed charges

 

$

5,625

 

$

10,661

 

$

2,241

 

 

$

67,059

 

$

168,706

 

$

150,661

 

Pre-tax preferred dividends(1)

 

 

 

 

 

 

23,545

 

30,863

 

Total fixed charges plus preferred dividends

 

$

5,625

 

$

10,661

 

$

2,241

 

 

$

67,059

 

$

192,251

 

$

181,524

 

Ratio of earnings to combined fixed charges and preferred dividends

 

9.8x

 

 

5.1x

 

 

20.7x

 

 

1.5x

 

Insufficient coverage

 

$

 

$

86,737

 

$

 

 

$

 

$

1,811,280

 

$

 

 


(1)                                 Preferred dividends shown herein relate to the Company’s Series A Mandatorily Convertible Preferred Stock (“Series A Preferred Stock”) issued on October 1, 2012, which allows, at the Company’s option, for the 8% annual dividend payment to be made either in cash or through an adjustment to the Series A Preferred Stock liquidation preference. Pre-tax preferred stock dividend amounts for the years ended December 31, 2015 and 2014 were calculated utilizing the Company’s effective tax rate for the applicable periods (0.5% and 5.2%, respectively) and represent the notional dividend amount as though paid in cash, rather than through an adjustment to the Series A Preferred Stock liquidation preference. On September 30, 2015, the Series A Preferred Stock converted into 3,738,424 shares of common stock.