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Exhibit 12.1


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

 
Six months ended 
 June 30,
 
Years Ended December 31,
 
2018
 
2017
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations before income taxes
$
(40
)
 
$
(55
)
 
$
(203
)
 
$
(26
)
 
$
(4,326
)
 
$
1,159

 
$
8

Loss from equity investees
—

 
—

 
—

 
—

 
—

 
—

 
12

(Loss) income before income taxes before adjustment for loss from equity investees
(40
)
 
(55
)
 
(203
)
 
(26
)
 
(4,326
)
 
1,159

 
20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
177

 
167

 
331

 
318

 
346

 
341

 
375

Distributed income of equity investees
—

 
—

 
—

 
—

 
—

 
—

 
24

Capitalized interest
(3
)
 
(2
)
 
(4
)
 
(4
)
 
(14
)
 
(21
)
 
(19
)
Total earnings available for fixed charges
$
134

 
$
110

 
$
124

 
$
288

 
$
(3,994
)
 
$
1,479

 
$
400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and debt expense
$
176

 
$
167

 
$
330

 
$
316

 
$
344

 
$
339

 
$
373

Interest component of rent
1

 
—

 
1

 
2

 
2

 
2

 
2

Total fixed charges
$
177

 
$
167

 
$
331

 
$
318

 
$
346

 
$
341

 
$
375

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges(1)
—

 
—

 
—

 
—

 
—

 
4.35x

 
1.07x

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1)
Earnings for the six months ended June 30, 2018 and 2017 were inadequate to cover fixed charges by $43 million and $57 million, respectively. Earnings for the years ended December 31, 2017 and 2016 were inadequate to cover fixed charges by $207 million and $30 million, respectively. 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.

For purposes of computing these ratios, earnings means income (loss) from continuing operations before income taxes 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.