EX-12.1 8 h40508exv12w1.htm STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1
Copano Energy, L.L.C. and Subsidiaries
Computation of Ratios of Earnings to Fixed Charges
(In Thousands)
                                                 
    Six Months                      
    Ended                      
    June 30,             Year Ended December 31,        
    2006     2005     2004     2003     2002     2001  
Earnings:
                                                
Net Income (loss)
   $ 26,300     $ 30,352     $ (915 )   $ (4,717 )   $ (1,641 )   $ 4,052  
Income taxes
     —       —       —       —       —       —  
Equity in (earnings) loss from unconsolidated affiliates
     (95 )     (927 )     (419 )     127       584       —  
 
                                    
Pre-tax income (loss) from continuing operations
     26,205       29,425       (1,334 )     (4,590 )     (1,057 )     4,052  
Fixed charges
     16,316       20,658       23,352       13,114       8,682       2,408  
Amortization of capitalized interest
     4       4       4       4       4       1  
Distributed income from unconsolidated affiliate
     —       —       —       —       145       —  
Capitalized interest
     (338 )     —       —       —       —       (74 )
Preferred equity distributions
     —       —       —       (810 )     (2,194 )     —  
 
                                    
Earnings for ratio calculation
   $ 42,187     $ 50,087     $ 22,022     $ 7,718     $ 5,580     $ 6,387  
 
                                    
 
                                                
Fixed charges:
                                                
Interest and other financing costs
   $ 15,787     $ 20,461     $ 23,160     $ 12,108     $ 6,360     $ 2,227  
Capitalized interest
     338       —       —       —       —       74  
Interest portion of operating leases
     191       197       192       196       128       107  
Preferred equity distributions
     —       —       —       810       2,194       —  
 
                                    
Total fixed charges
   $ 16,316     $ 20,658     $ 23,352     $ 13,114     $ 8,682     $ 2,408  
 
                                    
 
                                                
Ratios of earnings to fixed charges
     2.6 x     2.4 x     —       —       —       2.7 x
 
                                    
     For purposes of computing the ratios of earnings to fixed charges, earnings consist of pre-tax income from continuing operations before equity in (earnings) loss from unconsolidated affiliates plus fixed charges, amortization of capitalized interest and distributions from equity investees less capitalized interest and preference equity distributions. Fixed charges consist of interest expensed and capitalized, distributions on preference units and the estimated interest component of rent expense. Earnings were inadequate to cover fixed charges for the years ended December 31, 2004, 2003 and 2002 by $1.3 million, $5.4 million and $3.1 million, respectively.