EX-12.1 5 wes201710-kxex121.htm EXHIBIT 12.1 Exhibit


EXHIBIT 12.1

WESTERN GAS PARTNERS, LP

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS

 
 
Year Ended December 31,
thousands
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
583,084

 
$
610,666

 
$
59,739

 
$
495,729

 
$
292,559

Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
150,985

 
122,100

 
123,680

 
87,892

 
64,806

Distributions from equity investments
 
110,465

 
103,423

 
98,298

 
81,022

 
22,136

Amortization of capitalized interest
 
2,572

 
3,491

 
2,375

 
2,095

 
934

Less:
 
 
 
 
 
 
 
 
 
 
Equity income, net – affiliates
 
85,194

 
78,717

 
71,251

 
57,836

 
22,948

Capitalized interest
 
6,826

 
5,562

 
8,318

 
9,832

 
11,945

Net income before taxes attributable to noncontrolling interest
 
10,735

 
10,963

 
10,101

 
14,025

 
10,816

Earnings
 
$
744,351

 
$
744,438

 
$
194,422

 
$
585,045

 
$
334,726

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense, excluding capitalized interest
 
$
149,212

 
$
120,483

 
$
122,190

 
$
86,598

 
$
63,742

Interest component of rent expense
 
1,773

 
1,617

 
1,490

 
1,294

 
1,064

Fixed charges
 
$
150,985

 
$
122,100

 
$
123,680

 
$
87,892

 
$
64,806

 
 
 
 
 
 
 
 
 
 
 
Preferred unit distributions (1)
 
$
7,453

 
$
45,784

 
$
—

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
Combined fixed charges and preferred unit distributions
 
$
158,438

 
$
167,884

 
$
123,680

 
$
87,892

 
$
64,806

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
4.9x

 
6.1x

 
1.6x

 
6.7x

 
5.2x

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preferred unit distributions (2) (3)
 
4.7x

 
4.4x

 
1.6x

 
6.7x

 
5.2x

__________________________________________________________________
(1) 
Represents the distributions associated with the Series A Preferred units issued in 2016. The Series A Preferred units converted into common units on a one-for-one basis in 2017.
(2) 
These ratios were computed by dividing earnings by fixed charges and by combined fixed charges and preferred unit distributions, respectively. For this purpose, earnings include pre-tax income, plus fixed charges to the extent they affect current year earnings, amortization of capitalized interest and distributed income of equity investments, less equity income, noncontrolling interests in pre-tax income from subsidiaries that did not incur fixed charges, and interest capitalized during the year. Fixed charges include interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness, and estimates of interest within rental expenses.
(3) 
No preferred units were outstanding during the years ended December 31, 2015, 2014 and 2013.