BATTALION OIL CORP - FORM 10-Q - EX-12.1 - November 6, 2015

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Exhibit 12.1

Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(In thousands, except ratios)

 
   Nine Months Ended
September 30, 		  Years Ended December 31,  
 
   2015   2014   2014   2013   2012   2011   2010  

Earnings:

                                            

Income (loss) before income taxes

   $ (1,522,954 ) $ 55,899   $ 314,880   $ (1,380,378 ) $ (67,066 ) $ 5,399   $ 3,412  

Adjustments:

                                            

Equity investment (income) loss

     218     (651 )   (617 )   (97 )   (373 )   —     —  

Interest capitalized

     (80,262 )   (129,487 )   (168,897 )   (203,993 )   (53,492 )   —     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income (loss) before income taxes, as adjusted

   $ (1,602,998 ) $ (74,239 ) $ 145,366   $ (1,584,468 ) $ (120,931 ) $ 5,399   $ 3,412  

Fixed charges

     257,041     239,453     320,403     262,046     86,589     17,808     23,087  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total earnings

   $ (1,345,957 ) $ 165,214   $ 465,769   $ (1,322,422 ) $ (34,342 ) $ 23,207   $ 26,499  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Fixed charges:

                                            

Interest expense and amortization of finance costs

   $ 254,928   $ 237,485   $ 317,732   $ 259,159   $ 85,372   $ 17,373   $ 22,655  

Rental expense representative of interest factor

     2,113     1,968     2,671     2,887     1,217     435     432  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total fixed charges

   $ 257,041   $ 239,453   $ 320,403   $ 262,046   $ 86,589   $ 17,808   $ 23,087  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ratio of earnings to fixed charges

     — (1)   — (3)   1.5     — (5)   — (6)   1.3     1.1  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total fixed charges

   $ 257,041   $ 239,453   $ 320,403   $ 262,046   $ 86,589   $ 17,808   $ 23,087  

Pre-tax preferred dividend requirements

    
52,852		    
21,108		    
32,902		    
12,132		    
110,075		    
—		    
— 		 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total fixed charges plus preference dividends

   $ 309,893   $ 260,561   $ 353,305   $ 274,178   $ 196,664   $ 17,808   $ 23,087  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ratio of earnings to combined fixed charges and preference dividends

     — (2)   — (4)   1.3     — (5)   — (7)   1.3     1.1  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(1)
Due to the Company's "Loss before income taxes, as adjusted" for the nine months ended September 30, 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.6 billion to achieve a coverage ratio of 1:1.

(2)
Due to the Company's "Loss before income taxes, as adjusted" for the nine months ended September 30, 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.7 billion to achieve a coverage ratio of 1:1.

(3)
Due to the Company's "Loss before income taxes, as adjusted" for the nine months ended September 30, 2014, the ratio coverage was less than 1:1. The Company must generate additional earnings of $74.2 million to achieve a coverage ratio of 1:1.

(4)
Due to the Company's "Loss before income taxes, as adjusted" for the nine months ended September 30, 2014, the ratio coverage was less than 1:1. The Company must generate additional earnings of $95.3 million to achieve a coverage ratio of 1:1.

(5)
Due to the Company's "Loss before income taxes, as adjusted" in 2013, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.6 billion to achieve a coverage ratio of 1:1.

(6)
Due to the Company's "Loss before income taxes, as adjusted" in 2012, the ratio coverage was less than 1:1. The Company must generate additional earnings of $120.9 million to achieve a coverage ratio of 1:1.

(7)
Due to the Company's "Loss before income taxes, as adjusted" in 2012, the ratio coverage was less than 1:1. The Company must generate additional earnings of $231.0 million to achieve a coverage ratio of 1:1.



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Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends (In thousands, except ratios)

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