EX-12.1 2 wgp123115ex121.htm COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12.1

WESTERN GAS EQUITY PARTNERS, LP

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 
 
Year Ended December 31,
thousands
 
2015
 
2014
 
2013
 
2012
 
2011
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(63,166
)
 
$
416,347

 
$
290,585

 
$
172,813

 
$
238,827

Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
122,456

 
87,102

 
64,120

 
48,517

 
31,478

Distributions from equity investees
 
98,298

 
81,022

 
22,136

 
20,660

 
15,999

Amortization of capitalized interest
 
2,197

 
1,695

 
821

 
481

 
294

Less:
 
 
 
 
 
 
 
 
 
 
Equity income, net
 
71,251

 
57,836

 
22,948

 
16,042

 
11,261

Capitalized interest
 
8,318

 
9,832

 
11,945

 
6,196

 
420

Net income before taxes attributable to noncontrolling interests
 
(152,508
)
 
166,410

 
121,585

 
59,704

 
86,579

Earnings
 
$
232,724

 
$
352,088

 
$
221,184

 
$
160,529

 
$
188,338

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense, including capitalized interest
 
$
122,190

 
$
86,598

 
$
63,742

 
$
48,256

 
$
31,221

Interest component of rent expense
 
266

 
504

 
378

 
261

 
257

Fixed charges
 
$
122,456

 
$
87,102

 
$
64,120

 
$
48,517

 
$
31,478

Ratio of earnings to fixed charges
 
1.9x

 
4.0x

 
3.4x

 
3.3x

 
6.0x


These ratios were computed by dividing earnings by fixed charges. 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 investees, then subtracting 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.