EX-12.1 2 exhibit12_1.htm EXHIBIT 12.1 exhibit12_1.htm
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,
 
 
2008
 
2007
 
2006
 
2005
 
2004
 
Consolidated income
$ 954,021   $ 533,674   $ 601,155   $ 419,508   $ 268,261  
Add:
Minority interest
  41,376     30,643     9,079     5,760     8,128  
 
Provision for taxes
  26,401     15,257     21,323     8,362     3,761  
Less:
Equity in earnings from unconsolidated affiliates
  (59,104 )   (29,658 )   (21,565 )   (14,548 )   (52,787 )
Consolidated pre-tax income before minority interest
                             
and equity in earnings from unconsolidated affiliates
  962,694     549,916     609,992     419,082     227,363  
Add:
Fixed charges
  484,259     400,065     306,791     264,921     168,463  
 
Amortization of capitalized interest
  10,486     9,335     7,894     1,644     974  
 
Distributed income of equity investees
  98,553     73,593     43,032     56,058     68,027  
Subtotal
  1,555,992     1,032,909     967,709     741,705     464,827  
Less:
Capitalized interest
  (71,584 )   (75,476 )   (55,660 )   (22,046 )   (2,766 )
 
Minority interest
  (41,376 )   (30,643 )   (9,079 )   (5,760 )   (8,128 )
Total earnings
$ 1,443,032   $ 926,790   $ 902,970   $ 713,899   $ 453,933  
Fixed charges:
                             
 
Interest expense
$ 400,686   $ 311,764   $ 238,023   $ 230,549   $ 155,740  
 
Capitalized interest
  71,584     75,476     55,660     22,046     2,766  
 
Interest portion of rental expense
  11,989     12,825     13,108     12,326     9,957  
 
Total
$ 484,259   $ 400,065   $ 306,791   $ 264,921   $ 168,463  
Ratio of earnings to fixed charges
  2.98 x   2.32 x   2.94 x   2.69 x   2.69 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.