EXHIBIT 12.1

SM ENERGY COMPANY AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES

 
For the Years Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
 
(in thousands, except ratios)
Income (loss) before income taxes
$
(343,813
)
 
$
(1,201,916
)
 
$
(722,861
)
 
$
1,064,699

 
$
278,611

Add: Fixed charges
193,587

 
167,600

 
155,510

 
117,147

 
102,758

Add: Amortization of capitalized interest
11,623

 
13,905

 
9,116

 
11,448

 
11,784

Less: Capitalized interest
(12,607
)
 
(17,004
)
 
(25,051
)
 
(16,165
)
 
(10,952
)
Earnings before fixed charges
$
(151,210
)
 
$
(1,037,415
)
 
$
(583,286
)
 
$
1,177,129

 
$
382,201

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense (1)
$
179,257

 
$
148,685

 
$
128,149

 
$
98,554

 
$
89,711

Capitalized interest
12,607

 
17,004

 
25,051

 
16,165

 
10,952

Interest expense component of rent (2)
1,723

 
1,911

 
2,310

 
2,428

 
2,095

Total fixed charges
$
193,587

 
$
167,600

 
$
155,510

 
$
117,147

 
$
102,758

 

 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges

 

 

 
10.0

 
3.7

Insufficient coverage
$
344,797

 
$
1,205,015

 
$
738,796

 
$

 
$

____________________________________________
(1)
Includes amortization of deferred financing costs and discount. For the year ended December 31, 2016, excludes the $10.0 million paid to terminate a second lien facility that was no longer necessary to fund acquisition activity.
(2) 
Represents a reasonable approximation of the portion of rental expense assumed to be attributable to the interest factor.