EX-12.1 5 oas-12312018xex12110xk18ma.htm EXHIBIT 12.1
EXHIBIT 12.1
Oasis Petroleum Inc.
Computation of Ratio of Earnings to Fixed Charges

|  | Year Ended December 31,
|  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018
| (In thousands, except for ratios)
Earnings |  |  |  |  |  |  |  |  |  |
Income (loss) before income taxes |  | $ | 814,468 |  |  | $ | (56,371 | ) |  | $ | (371,554 | ) |  | $ | (75,858 | ) |  | $ | (25,343 | )
Add: Fixed charges |  | 167,890 |  |  | 170,624 |  |  | 159,260 |  |  | 161,336 |  |  | 179,858 |
Add: Amortization of capitalized interest |  | 1,718 |  |  | 3,315 |  |  | 4,935 |  |  | 7,346 |  |  | 11,185 |
Less: Capitalized interest |  | (8,850 | ) |  | (18,582 | ) |  | (16,848 | ) |  | (12,797 | ) |  | (17,226 | )
Total earnings |  | $ | 975,226 |  |  | $ | 98,986 |  |  | $ | (224,207 | ) |  | $ | 80,027 |  |  | $ | 148,474 |
Fixed charges |  |  |  |  |  |  |  |  |  |
Interest expense |  | $ | 158,390 |  |  | $ | 149,648 |  |  | $ | 140,305 |  |  | $ | 146,837 |  |  | $ | 159,085 |
Capitalized interest |  | 8,850 |  |  | 18,582 |  |  | 16,848 |  |  | 12,797 |  |  | 17,226 |
Rental expense attributable to interest |  | 650 |  |  | 2,394 |  |  | 2,107 |  |  | 1,702 |  |  | 3,547 |
Total fixed charges |  | $ | 167,890 |  |  | $ | 170,624 |  |  | $ | 159,260 |  |  | $ | 161,336 |  |  | $ | 179,858 |
Ratio of earnings to fixed charges(1)(2) |  | 5.81 |  |  | — |  |  | — |  |  | — |  |  | — |

(1) | For purposes of calculating the ratios of consolidated earnings to fixed charges, earnings consist of income before income taxes and fixed charges. Fixed charges consist of interest expensed and capitalized, amortized deferred financing costs and an estimate of interest within rental expense.

(2) | Due to our net pre-tax losses for the years ended December 31, 2018, 2017, 2016 and 2015, the ratio coverage was less than 1:1. The Company would have needed additional earnings of $31.4 million, $81.3 million, $383.5 million and $71.6 million for the year ended December 31, 2018, 2017, 2016 and 2015, respectively, to achieve a coverage of 1:1.