EX-12.1 2 h51126exv12w1.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)
                                                 
    Nine Months                
    Ended                
    September 30,     Year Ended December 31,          
    2007     2006     2005     2004     2003     2002  
Earnings:
                                                
Net Income (loss)
   $ 41,677     $ 65,114     $ 30,352     $ (915 )   $ (4,717 )   $ (1,641 )
Income taxes
     1,182       —       —       —       —       —  
Equity in (earnings) loss from unconsolidated affiliates
     (2,019 )     (1,297 )     (927 )     (419 )     127       584  
 
                                    
Pre-tax income (loss) from continuing operations
     40,840       63,817       29,425       (1,334 )     (4,590 )     (1,057 )
Fixed charges
     19,339       34,011       20,658       23,352       13,114       8,682  
Amortization of capitalized interest
     54       38       4       4       4       4  
Distributed income from unconsolidated affiliate
     2,888       —       —       —       —       145  
Capitalized interest
     (676 )     (693 )     —       —       —       —  
Preferred equity distributions
     —       —       —       —       (810 )     (2,194 )
 
                                    
Earnings for ratio calculation
   $ 62,445     $ 97,173     $ 50,087     $ 22,022     $ 7,718     $ 5,580  
 
                                    
 
                                                
Fixed charges:
                                                
Interest and other financing costs
   $ 18,314       32,904     $ 20,461     $ 23,160     $ 12,108     $ 6,360  
Capitalized interest
     676       693       —       —       —       —  
Interest portion of operating leases
     349       414       197       192       196       128  
Preferred equity distributions
     —       —       —       —       810       2,194  
 
                                    
Total fixed charges
   $ 19,339     $ 34,011     $ 20,658     $ 23,352     $ 13,114     $ 8,682  
 
                                    
 
                                                
Ratios of earnings to fixed charges
     3.2x       2.9x       2.4x       —       —       —  
 
                                    
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.