EX-12 2 ex12.htm EXHIBIT 12 ex12.htm
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
 
The following table sets forth the ratio of earnings to fixed charges for Southern Union on a historical basis for the three months ended March 31, 2008, the years ended December 31, 2007, 2006 and 2005, the six months ended December 31, 2004, and the year ended June 30, 2004.  For the purpose of calculating such ratios, “earnings” consist of pre-tax income from continuing operations before income or loss from equity investees, adjusted to reflect distributed income from equity investments, and fixed charges, less capitalized interest.  “Fixed charges” consist of interest costs, amortization of debt discount, premiums and issuance costs and an estimate of interest implicit in rentals.  No adjustment has been made to earnings for the amortization of capital interest for the periods presented as such amount is immaterial.  Interest on FIN 48 liabilities is excluded from the computation of fixed charges as it is recorded by Southern Union in income tax expense versus interest expense.
 

   
3 Months Ended
    
Year Ended December 31,
    
6 Months Ended
    
Year Ended
  
   
March 31, 2008
    
2007
    
2006
    
2005
    
December 31, 2004
    
June 30, 2004
  
   
(dollars in thousands)
  
FIXED CHARGES:
                                    
Interest Expense
   $ 50,051     $ 202,403     $ 202,513     $ 132,971     $ 65,344     $ 137,967  
Net amortization of debt discount, premium and
                                                
   issuance expense
     650       743       12,130       2,186       (446 )     (10,100 )
Capitalized Interest
     4,647       14,708       5,492       8,950       2,614       3,865  
Interest portion of rental expense
     1,739       6,645       6,234       6,700       3,152       5,940  
                                                 
Total Fixed Charges
   $ 57,087     $ 224,499     $ 226,369     $ 150,807     $ 70,664     $ 137,672  
                                                 
EARNINGS:
                                                
Consolidated pre-tax income (loss) from
                                                
   continuing operations
   $ 119,921     $ 323,970     $ 326,330     $ 203,148     $ 16,954     $ 106,468  
Earnings of equity investments
     (16,729 )     (100,914 )     (141,370 )     (70,742 )     (4,745 )     (200 )
Distributed income from equity investments
     24,817       103,550       62,637       15,203       -       174  
Capitalized interest
     (4,647 )     (14,708 )     (5,492 )     (8,950 )     (2,614 )     (3,865 )
Total fixed charges (from above)
     57,087       224,499       226,369       150,807       70,664       137,672  
                                                 
Earnings Available for Fixed Charges
   $ 180,449     $ 536,397     $ 468,474     $ 289,466     $ 80,259     $ 240,249  
                                                 
                                                 
Ratio of Earnings to Fixed Charges
     3.2       2.4       2.1       1.9       1.1       1.7