EX-12.1 4 dex121.txt CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 Exhibit 12.1 Statement of Computation of Ratio of Earnings to Fixed Charges
Plains All American Pipeline ----------------------------------------------------------------------------------- Predecessor Historical Pro Forma(2) ------------------------- -------------------------------------------------------- -------------------------- Adjusted Adjusted Nine Year Nine Months Year Ended January 1 to November 23 to Year Ended Months Ended Ended Ended December 31, November 22, December 31, December 31, September 30, December 31, September 30, ------------ ----------- ----------- ----------------------------- ------------ ------------ ------------- 1997 1998 1998 1999 2000 2001 2002 2001 2002 ------------ ------------ ---------- --------- -------- ------- ----------- ------------ ------------- EARNINGS Income from Continuing Operations 3,408 6,888 1,777 (101,815) 92,649 43,671 47,549 39,345 41,079 Add: Fixed Charges 4,635 11,949 1,496 25,974 33,283 34,409 25,264 38,735 31,734 Subtract: Capitalized Interest - - - - - (153) (640) (153) (640) --------- ------------ ---------- --------- -------- -------- ---------- --------- --------- Total Earnings 8,043 18,837 3,273 (75,841) 125,932 77,927 72,173 77,927 72,173 ========= ============ ========== ========= ======== ======== ========== ========= ========= FIXED CHARGES Interest Expensed and Capitalized 4,516 11,260 1,371 21,139 28,691 29,235 20,815 33,261 27,035 Amortization of Debt Expense - 568 114 2,201 2,051 2,667 2,532 2,967 2,782 Rental Interest Factor 119 121 11 2,634 2,541 2,507 1,917 2,507 1,917 --------- ------------ ---------- --------- -------- -------- ---------- --------- --------- Total Fixed Charges 4,635 11,949 1,496 25,974 33,283 34,409 25,264 38,735 31,734 ========= ============ ========== ========= ======= ======== ========== ========= ========= RATIO: EARNINGS/FIXED CHARGES (1) 1.74x 1.58x 2.19x - 3.78x 2.26x 2.86x 2.01x 2.27x ========= ============ =========== ========= ======= ======== ========== ========= =========
(1) In 1999 available earnings failed to cover fixed charges by $101.8 million. Included in earnings for 1999 was $166.4 million in unauthorized trading losses, a $16.5 million gain on the sale of linefill and restructuring expenses of $1.4 million. If these events had not occurred, the ratio of earnings to fixed charges would have been 2.91x. Income from continuing operations before extraordinary items used to calculate the ratio of earnings to fixed charges for the year ended December 31, 2000, includes a gain on sale of assets of $48.2 million. If this event had not occurred, the ratio of earnings to fixed charges would have been 2.34x. (2) Pro forma to give effect to this notes offering.