BATTALION OIL CORP - FORM 10-Q - EX-12.1 - July 28, 2016

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Exhibit 12.1

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

 
   Six Months Ended
June 30, 		  Years Ended December 31,  
 
   2016   2015   2015   2014   2013   2012   2011  

Earnings:

                                            

Income (loss) before income taxes

   $ (914,302 ) $ (1,676,054 ) $ (1,913,535 ) $ 314,880   $ (1,380,378 ) $ (67,066 ) $ 5,399  

Adjustments:

                                            

Equity investment (income) loss

     141     234     171     (617 )   (97 )   (373 )   —  

Interest capitalized

     (52,944 )   (51,443 )   (113,009 )   (168,897 )   (203,993 )   (53,492 )   —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income (loss) before income taxes, as adjusted

   $ (967,105 ) $ (1,727,263 ) $ (2,026,373 ) $ 145,366   $ (1,584,468 ) $ (120,931 ) $ 5,399  

Fixed charges

     157,530     170,253     340,399     320,403     262,046     86,589     17,808  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total earnings

   $ (809,575 ) $ (1,557,010 ) $ (1,685,974 ) $ 465,769   $ (1,322,422 ) $ (34,342 ) $ 23,207  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Fixed charges:

                                            

Interest expense and amortization of finance costs

   $ 156,096   $ 168,849   $ 337,554   $ 317,732   $ 259,159   $ 85,372   $ 17,373  

Rental expense representative of interest factor

     1,434     1,404     2,845     2,671     2,887     1,217     435  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total fixed charges

   $ 157,530   $ 170,253   $ 340,399   $ 320,403   $ 262,046   $ 86,589   $ 17,808  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ratio of earnings to fixed charges

     — (1)   — (3)   — (5)   1.5     — (7)   — (8)   1.3  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total fixed charges

   $ 157,530   $ 170,253   $ 340,399   $ 320,403   $ 262,046   $ 86,589   $ 17,808  

Pre-tax preferred dividend requirements

     34,913     29,517     83,942     32,902     12,132     110,075     —  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total fixed charges plus preference dividends

   $ 192,443   $ 199,770   $ 424,341   $ 353,305   $ 274,178   $ 196,664   $ 17,808  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ratio of earnings to combined fixed charges and preference dividends

     — (2)   — (4)   — (6)   1.3     — (7)   — (9)   1.3  
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
(1)
Due to the Company's "Loss before income taxes, as adjusted" for the six months ended June 30, 2016, the ratio coverage was less than 1:1. The Company must generate additional earnings of $967.1 million to achieve a coverage ratio of 1:1.

(2)
Due to the Company's "Loss before income taxes, as adjusted" for the six months ended June 30, 2016, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.0 billion to achieve a coverage ratio of 1:1.

(3)
Due to the Company's "Loss before income taxes, as adjusted" for the six months ended June 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.

(4)
Due to the Company's "Loss before income taxes, as adjusted" for the six months ended June 30, 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $1.8 billion to achieve a coverage ratio of 1:1.

(5)
Due to the Company's "Loss before income taxes, as adjusted" in 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $2.0 billion to achieve a coverage ratio of 1:1.

(6)
Due to the Company's "Loss before income taxes, as adjusted" in 2015, the ratio coverage was less than 1:1. The Company must generate additional earnings of $2.1 billion to achieve a coverage ratio of 1:1.

(7)
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.

(8)
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.

(9)
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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