EXHIBIT 12.1

APPROACH RESOURCES INC.

STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

 

     Years ended December 31,      Three months
ended
March 31, 2013		  
(in thousands, except ratios)    2008      2009     2010      2011      2012     

COMPUTATION OF EARNINGS (LOSS):

                 

Earnings (loss) before income taxes

      35,497         (6,014 )      11,562         10,730         9,722         (534 ) 

Fixed charges

      1,320         1,809        2,219         3,426         4,766         1,237   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
     36,817         (4,205 )      13,781         14,156         14,488         703   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

COMPUTATION OF FIXED CHARGES:

                 

Interest expense(1)

      1,269         1,787        2,198         3,402         4,737         1,229   

Implicit interest in rent

      9         22        21         24         29         8   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
     1,278         1,809        2,219         3,426         4,766         1,237   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings (loss) to fixed charges (2)

      28.77x         —  (3)        6.21x         4.13x         3.04x         —  (3)   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) For purposes of computing this ratio, we have excluded interest income from interest expense amounts reported on the consolidated statement of operations.
(2) The ratio has been computed by dividing (loss) earnings by fixed charges. For purposes of computing the ratio, (i) (loss) earnings consist of (loss) income before income taxes, and (ii) fixed charges consist of interest expense and a portion of rentals representative of an implicit interest factor for such rentals.
(3) Due to our net loss for the year ended December 31, 2009, and for the three months ended March 31, 2013, the coverage ratio for each of these periods was less than 1:1. To achieve a coverage ratio of 1:1, we would have needed additional earnings of approximately $4.2 million for the year ended December 31, 2009, and additional earnings of approximately $0.5 million for the three months ended March 31, 2013.