EX-12 2 ex12.htm EX-12 ex12.htm
EXHIBIT 12     

 

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, 2009 and the years ended December 31, 2008, 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
 
         
March 31,
  
Year Ended December 31,
  
December 31,
  
June 30,
  
         
2009
  
2008
  
2007
  
2006
  
2005
  
2004
  
2004
  
         
(In thousands)
FIXED CHARGES:
                                
Interest Expense
    
 $          47,503
  
 $     204,272
  
 $   202,403
  
 $   202,513
  
 $   132,971
  
 $            65,344
  
 $     137,967
  
Net amortization of debt discount, premium and
                            
   issuance expense
    
                 867
  
           3,136
  
            743
  
        12,130
  
         2,186
  
                  (446)
  
         (10,100)
  
Capitalized Interest
    
               5,477
 
         18,963
  
        14,708
  
         5,492
  
         8,950
  
                2,614
  
           3,865
  
Interest portion of rental expense
    
               1,781
  
           6,386
  
         6,645
  
         6,234
  
         6,700
  
                3,152
  
           5,940
  
                                     
  Total Fixed Charges
    
 $          55,628
  
 $     232,757
  
 $   224,499
  
 $   226,369
  
 $   150,807
  
 $            70,664
  
 $     137,672
  
                                     
EARNINGS:
                                
Consolidated pre-tax income (loss) from
                                
   continuing operations
    
 $          82,131
  
 $     399,926
  
 $   323,970
  
 $   326,330
  
 $   203,148
  
 $            16,954
  
 $     106,468
  
Earnings of equity investments
    
            (16,573)
  
        (75,030)
  
     (100,914)
  
     (141,370)
  
       (70,742)
  
               (4,745)
  
             (200)
  
Distributed income from equity investments
    
                      -
  
         77,150
  
      103,550
  
        62,637
  
        15,203
  
                       -
  
              174
  
Capitalized interest
    
              (5,477)
  
        (18,963)
  
       (14,708)
  
        (5,492)
  
        (8,950)
  
               (2,614)
  
          (3,865)
  
Total fixed charges (from above)
    
             55,628
  
       232,757
  
      224,499
  
      226,369
  
      150,807
  
               70,664
  
        137,672
  
                                     
  Earnings Available for Fixed Charges
    
 $        115,709
  
 $     615,840
  
 $   536,397
  
 $   468,474
  
 $   289,466
  
 $            80,259
  
 $     240,249
  
                                     
                                     
Ratio of Earnings to Fixed Charges
    
                  2.1
  
              2.6
  
             2.4
  
             2.1
  
             1.9
  
                    1.1
  
               1.7