EX-12.1 2 ex1213311710-k.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1

NGL ENERGY PARTNERS LP AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES
AND COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS
(In thousands, except ratio amounts)
 
 
Year Ended March 31,
 
 
2017
 
2016
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS):
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
145,813

 
$
(187,464
)
 
$
46,571

 
$
49,695

 
$
50,065

Income before income taxes attributable to noncontrolling interests
 
(6,832
)
 
(11,832
)
 
(12,887
)
 
(1,103
)
 
(250
)
Fixed charges
 
189,465

 
146,401

 
151,956

 
91,622

 
66,824

Total earnings (loss)
 
$
328,446

 
$
(52,895
)
 
$
185,640

 
$
140,214

 
$
116,639

 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
150,478

 
$
133,089

 
$
110,123

 
$
58,854

 
$
32,994

(Gain) loss on early extinguishment of debt
 
(2,449
)
 
(28,532
)
 
—

 
—

 
5,769

Portion of rental expense estimated to relate to interest (1)
 
41,436

 
41,844

 
41,833

 
32,768

 
28,061

Fixed charges
 
$
189,465

 
$
146,401

 
$
151,956

 
$
91,622

 
$
66,824

 
 
 
 
 
 
 
 
 
 
 
PREFERRED UNIT DISTRIBUTIONS
 
14,693

 
—

 
—

 
—

 
—

Combined fixed charges and preferred unit distributions
 
$
204,158

 
$
146,401

 
$
151,956

 
$
91,622

 
$
66,824

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (2)
 
1.73

 
—

 
1.22

 
1.53

 
1.75

Ratio of earnings to combined fixed charges and preferred unit distributions
 
1.61

 
 
 
 
 
 
 
 
 
(1)
Represents one-third of the total operating lease rental expense, which is that portion estimated to represent interest.
(2)
The ratio was less than 1:1 for the year ended March 31, 2016. NGL Energy Partners LP would have needed to generate an additional $199.3 million of earnings to achieve a ratio of 1:1.