EX-12.1 5 h43968exv12w1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

EXHIBIT 12.1
ENTERPRISE PRODUCTS PARTNERS L.P.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
                                             
        For the Year Ended December 31,  
        2006     2005     2004     2003     2002  
         
Consolidated income   $ 601,155     $ 419,508     $ 268,261     $ 104,546     $ 95,500  
Add:  
Minority interest
    9,079       5,760       8,128       3,859       2,947  
   
Provision for taxes
    21,323       8,362       3,761       5,293       1,634  
Less:  
Equity in (income) loss of unconsolidated affiliates
    (21,565 )     (14,548 )     (52,787 )     13,960       (35,253 )
         
Consolidated pre-tax income before minority interest and equity earnings from unconsolidated affiliates     609,992       419,082       227,363       127,658       64,828  
Add:  
Fixed charges
    306,791       264,921       168,463       151,338       111,141  
   
Amortization of capitalized interest
    7,894       1,644       974       579       363  
   
Distributed income of equity investees
    43,032       56,058       68,027       31,882       57,662  
         
   
Subtotal
    967,709       741,705       464,827       311,457       233,994  
Less:  
Interest capitalized
    (55,660 )     (22,046 )     (2,766 )     (1,595 )     (1,083 )
   
Minority interest
    (9,079 )     (5,760 )     (8,128 )     (3,859 )     (2,947 )
         
Total earnings   $ 902,970     $ 713,899     $ 453,933     $ 306,003     $ 229,964  
         
Fixed charges:                                        
   
Interest expense
  $ 238,023     $ 230,549     $ 155,740     $ 140,806     $ 101,580  
   
Capitalized interest
    55,660       22,046       2,766       1,595       1,083  
   
Interest portion of rental expense
    13,108       12,326       9,957       8,937       8,478  
         
   
Total
  $ 306,791     $ 264,921     $ 168,463     $ 151,338     $ 111,141  
         
Ratio of earnings to fixed charges     2.89x       2.69x       2.69x       2.02x       2.07x  
         
          These computations take into account our consolidated operations and the distributed income from our equity method investees. For purposes of these calculations, “earnings” is the amount resulting from adding and subtracting the following items:
          Add the following, as applicable:
    consolidated pre-tax income before minority interest and income or loss from equity investees;
 
    fixed charges;
 
    amortization of capitalized interest;
 
    distributed income of equity investees; and
 
    our share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges.
 
      From the subtotal of the added items, subtract the following, as applicable:
 
    interest capitalized;
 
    preference security dividend requirements of consolidated subsidiaries; and
 
    minority interest in pre-tax income of subsidiaries that have not incurred fixed charges.
          The term “fixed charges” means the sum of the following: interest expensed and capitalized; amortized premiums, discounts and capitalized expenses related to indebtedness; an estimate of interest within rental expenses; and preference dividend requirements of consolidated subsidiaries.