Attached files

file filename
10-Q - 10-Q - EP Energy Corpepenergycorp0331201710q.htm
EX-32.2 - EXHIBIT 32.2 - EP Energy Corpex3220331201710q.htm
EX-32.1 - EXHIBIT 32.1 - EP Energy Corpex3210331201710q.htm
EX-31.2 - EXHIBIT 31.2 - EP Energy Corpex3120331201710q.htm
EX-31.1 - EXHIBIT 31.1 - EP Energy Corpex3110331201710q.htm
Exhibit 12.1


EP ENERGY CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)

 
Successor
 
 
Predecessor
 
Three Months Ended March 31,
 
Years Ended December 31,
 
 
February 14 to December 31,
 
January 1 to May 24,
 
2017
 
2016
 
2016
 
2015
 
2014
 
2013
 
 
2012
 
2012
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations before income taxes
$
(47
)
 
$
94

 
$
(26
)
 
$
(4,326
)
 
$
1,159

 
$
8

 
 
$
(306
)
 
$
321

Loss from equity investees

 

 

 

 

 
12

 
 
2

 
5

(Loss) income before income taxes before adjustment for loss from equity investees
(47
)
 
94

 
(26
)
 
(4,326
)
 
1,159

 
20

 
 
(304
)
 
326

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
84

 
86

 
318

 
346

 
341

 
375

 
 
232

 
18

Distributed income of equity investees

 

 

 

 

 
24

 
 
14

 
8

Capitalized interest
(1
)
 
(2
)
 
(4
)
 
(14
)
 
(21
)
 
(19
)
 
 
(12
)
 
(4
)
Total earnings available for fixed charges
$
36

 
$
178

 
$
288

 
$
(3,994
)
 
$
1,479

 
$
400

 
 
$
(70
)
 
$
348

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and debt expense
$
84

 
$
86

 
$
316

 
$
344

 
$
339

 
$
373

 
 
$
231

 
$
18

Interest component of rent

 

 
2

 
2

 
2

 
2

 
 
1

 

Total fixed charges
$
84

 
$
86

 
$
318

 
$
346

 
$
341

 
$
375

 
 
$
232

 
$
18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges(1)
0.43x

 
2.07x

 
0.90x

 
 
4.35x

 
1.07x

 
 

 
19.33x

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1)
Earnings for the year ended December 31, 2015 were inadequate to cover fixed charges by $4,340 million, 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 February 14 to December 31, 2012 were inadequate to cover fixed charges by $302 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.