Attached files
| file | filename |
|---|---|
| EX-32.2 - EXHIBIT 32.2 - EP Energy Corp | ex3220331201810q.htm |
| EX-32.1 - EXHIBIT 32.1 - EP Energy Corp | ex3210331201810q.htm |
| EX-31.2 - EXHIBIT 31.2 - EP Energy Corp | ex3120331201810q.htm |
| EX-31.1 - EXHIBIT 31.1 - EP Energy Corp | ex3110331201810q.htm |
| 10-Q - 10-Q - EP Energy Corp | epenergycorp0331201810q.htm |
Exhibit 12.1
EP ENERGY CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
Three months ended March 31, | Years Ended December 31, | ||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||||
Earnings | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 18 | $ | (47 | ) | $ | (203 | ) | $ | (26 | ) | $ | (4,326 | ) | $ | 1,159 | $ | 8 | |||||||||
Loss from equity investees | — | — | — | — | — | — | 12 | ||||||||||||||||||||
Income (loss) before income taxes before adjustment for loss from equity investees | 18 | (47 | ) | (203 | ) | (26 | ) | (4,326 | ) | 1,159 | 20 | ||||||||||||||||
Fixed charges | 86 | 84 | 331 | 318 | 346 | 341 | 375 | ||||||||||||||||||||
Distributed income of equity investees | — | — | — | — | — | — | 24 | ||||||||||||||||||||
Capitalized interest | (1 | ) | (1 | ) | (4 | ) | (4 | ) | (14 | ) | (21 | ) | (19 | ) | |||||||||||||
Total earnings available for fixed charges | $ | 103 | $ | 36 | $ | 124 | $ | 288 | $ | (3,994 | ) | $ | 1,479 | $ | 400 | ||||||||||||
Fixed charges | |||||||||||||||||||||||||||
Interest and debt expense | $ | 86 | $ | 84 | $ | 330 | $ | 316 | $ | 344 | $ | 339 | $ | 373 | |||||||||||||
Interest component of rent | — | — | 1 | 2 | 2 | 2 | 2 | ||||||||||||||||||||
Total fixed charges | $ | 86 | $ | 84 | $ | 331 | $ | 318 | $ | 346 | $ | 341 | $ | 375 | |||||||||||||
Ratio of earnings to fixed charges(1) | 1.20x | — | — | — | — | 4.35x | 1.07x | ||||||||||||||||||||
(1) | Earnings for the quarter ended March 31, 2017 were inadequate to cover fixed charges by $48 million. Earnings for the years ended December 31, 2017 and 2016 were inadequate to cover fixed charges by $207 million and $30 million, respectively. Earnings for the year ended December 31, 2015 were inadequate to cover fixed charges by $4,340 million, primarily due to non-cash impairment charges of approximately $4.3 billion associated with proved and unproved oil and natural gas properties related to a decline in commodity prices. |
For purposes of computing these ratios, earnings means income (loss) from continuing operations before income taxes or loss from equity investees, adjusted to reflect actual distributions from equity investments and fixed charges less capitalized interest. Fixed charges means the sum of interest costs (not including interest on tax liabilities which is included in income tax expense on our income statement), amortization of debt costs and that portion of rental expense we believe reflects a reasonable approximation of the interest component of rent expense.