EX-12.1 2 h54099exv12w1.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,
    2007   2006   2005   2004   2003
     
Consolidated income
  $ 533,674     $ 601,155     $ 419,508     $ 268,261     $ 104,546  
Add: Minority interest
    30,643       9,079       5,760       8,128       3,859  
Provision for taxes
    15,257       21,323       8,362       3,761       5,293  
Less: Equity in (income) loss of unconsolidated affiliates
    (29,658 )     (21,565 )     (14,548 )     (52,787 )     13,960  
     
Consolidated pre-tax income before minority interest and equity earnings from unconsolidated affiliates
    549,916       609,992       419,082       227,363       127,658  
Add: Fixed charges
    400,065       306,791       264,921       168,463       151,338  
Amortization of capitalized interest
    9,335       7,894       1,644       974       579  
Distributed income of equity investees
    73,593       43,032       56,058       68,027       31,882  
     
Subtotal
    1,032,909       967,709       741,705       464,827       311,457  
Less: Interest capitalized
    (75,476 )     (55,660 )     (22,046 )     (2,766 )     (1,595 )
Minority interest
    (30,643 )     (9,079 )     (5,760 )     (8,128 )     (3,859 )
     
Total earnings
  $ 926,790     $ 902,970     $ 713,899     $ 453,933     $ 306,003  
     
Fixed charges:
                                       
Interest expense
  $ 311,764     $ 238,023     $ 230,549     $ 155,740     $ 140,806  
Capitalized interest
    75,476       55,660       22,046       2,766       1,595  
Interest portion of rental expense
    12,825       13,108       12,326       9,957       8,937  
     
Total
  $ 400,065     $ 306,791     $ 264,921     $ 168,463     $ 151,338  
     
Ratio of earnings to fixed charges
    2.32 x     2.94 x     2.69 x     2.69 x     2.02 x
     
          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.