EX-12.1 3 ceqp-ex121xq32016xratioofe.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1


CRESTWOOD EQUITY PARTNERS LP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except for ratio)

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
 
Earnings:
 
 
 
 
 
 
 
 
Pre-tax loss from continuing operations before adjustment for non-controlling interest and equity earnings (including amortization of excess cost of equity investment) per statements of income
$
(10.2
)
 
$
(626.5
)
 
$
(153.7
)
 
$
(912.7
)
 
Add:
 
 
 
 
 
 
 
 
     Fixed charges
29.8


40.2


104.8

 
117.9

 
     Amortized capitalized interest
0.1

 
0.1

 
0.3

 
0.2

 
     Distributed income of equity investees
10.3

 
3.2

 
22.2

 
9.6

 
Less:
 
 
 
 
 
 
 
 
     Capitalized interest
(0.1
)
 
(0.5
)
 
(0.6
)
 
(2.1
)
 
Non-controlling interest in pre-tax income of subsidiary with no fixed charges
(6.1
)
 
(5.9
)
 
(18.0
)

(17.2
)
 
     Total earnings available for fixed charges
$
23.8


$
(589.4
)

$
(45.0
)
 
$
(804.3
)
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
   Interest and debt expense
27.6

 
36.2

 
98.5

 
106.8

 
   Interest component of rent
2.2

 
4.0

 
6.3

 
11.1

 
   Total fixed charges
$
29.8


$
40.2


$
104.8

 
$
117.9

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (1) (2)
—

 
—


—

 
—

 

(1)
For purposes of computing the ratio of earnings to fixed charges, "earnings" consists of pretax income from continuing operations before adjustment for non-controlling interest and income from equity investee plus fixed charges (excluding capitalized interest) and amortized capitalized interest. "Fixed charges" represents interest incurred (whether expensed or capitalized), amortization of debt costs and that portion of rental expense on operating leases deemed to be the equivalent of interest.
(2)
Earnings for the three and nine months ended September 30, 2016 were inadequate to cover fixed charges by approximately $6.0 million and $149.8 million. Earnings for the three and nice months ended September 30, 2015 were inadequate to cover fixed charges by approximately $629.6 million and $922.2 million.