Attached files
| file | filename |
|---|---|
| 10-Q - 10-Q - EP Energy LLC | epenergyllcq22016-10q.htm |
| EX-32.2 - EXHIBIT 32.2 - EP Energy LLC | ex32263016llc10q.htm |
| EX-32.1 - EXHIBIT 32.1 - EP Energy LLC | ex32163016llc10q.htm |
| EX-31.2 - EXHIBIT 31.2 - EP Energy LLC | ex31263016llc10q.htm |
| EX-31.1 - EXHIBIT 31.1 - EP Energy LLC | ex31163016llc10q.htm |
Exhibit 12.1
EP ENERGY LLC
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
Successor | Predecessor | |||||||||||||||||||||||||||||||
Six Months Ended June 30, | Years Ended December 31, | March 23 (inception) to December 31, | January 1 to May 24, | Year Ended December 31, | ||||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2012 | 2011 | |||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 156 | $ | (301 | ) | $ | (4,326 | ) | $ | 1,262 | $ | 42 | $ | (305 | ) | $ | 321 | $ | 628 | |||||||||||||
Loss from equity investees | — | — | — | — | 12 | 2 | 5 | 7 | ||||||||||||||||||||||||
Income (loss) before income taxes before adjustment for loss from equity investees | 156 | (301 | ) | (4,326 | ) | 1,262 | 54 | (303 | ) | 326 | 635 | |||||||||||||||||||||
Fixed charges | 160 | 175 | 346 | 339 | 342 | 231 | 18 | 25 | ||||||||||||||||||||||||
Distributed income of equity investees | — | — | — | — | 24 | 14 | 8 | 46 | ||||||||||||||||||||||||
Capitalized interest | (2 | ) | (9 | ) | (14 | ) | (21 | ) | (19 | ) | (12 | ) | (4 | ) | (10 | ) | ||||||||||||||||
Total earnings available for fixed charges | $ | 314 | $ | (135 | ) | $ | (3,994 | ) | $ | 1,580 | $ | 401 | $ | (70 | ) | $ | 348 | $ | 696 | |||||||||||||
Fixed charges | ||||||||||||||||||||||||||||||||
Interest and debt expense | $ | 159 | $ | 174 | $ | 344 | $ | 337 | $ | 340 | $ | 230 | $ | 18 | $ | 25 | ||||||||||||||||
Interest component of rent | 1 | 1 | 2 | 2 | 2 | 1 | — | — | ||||||||||||||||||||||||
Total fixed charges | $ | 160 | $ | 175 | $ | 346 | $ | 339 | $ | 342 | $ | 231 | $ | 18 | $ | 25 | ||||||||||||||||
Ratio of earnings to fixed charges(1) | 1.97x | — | — | 4.66x | 1.17x | — | 19.33x | 27.84x | ||||||||||||||||||||||||
(1) | Earnings for the six months ended June 30, 2015 were inadequate to cover fixed charges by $310 million. 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. Earnings for the period from March 23 (inception) to December 31, 2012 were inadequate to cover fixed charges by $301 million. |
For purposes of computing these ratios, earnings means income (loss) from continuing operations before income taxes before income 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.