EX-12 2 exhibit12.htm EXHIBIT 12 exhibit12.htm  

Exhibit 12

SOUTHERN UNION COMPANY
RATIO OF EARNINGS TO FIXED CHARGES


The following table sets forth the ratio of earnings to fixed charges for the Company on a historical basis for the three months ended March 31, 2011 and the years ended December 31, 2010, 2009, 2008, 2007 and 2006.  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 unrecognized tax liabilities is excluded from the computation of fixed charges as it is recorded by the Company in income tax expense versus interest expense.


   
3 Months Ended
    
Year Ended December 31,
  
   
March 31, 2011
    
2010
    
2009
    
2008
    
2007
    
2006
  
   
(In thousands)
  
FIXED CHARGES:
                                    
Interest Expense
   $ 54,053     $ 210,008     $ 191,022     $ 204,272     $ 202,403     $ 202,513  
Net amortization of debt discount, premium and
                                                
   issuance expense
     1,518       6,657       5,778       3,136       743       12,130  
Capitalized Interest
     258       6,646       25,747       18,963       14,708       5,492  
Interest portion of rental expense
     1,685       6,685       7,576       6,386       6,645       6,234  
                                                 
Total Fixed Charges
   $ 57,514     $ 229,996     $ 230,123     $ 232,757     $ 224,499     $ 226,369  
                                                 
EARNINGS:
                                                
Consolidated pre-tax income (loss) from
                                                
   continuing operations
   $ 79,304     $ 349,677     $ 251,480     $ 399,926     $ 323,970     $ 326,330  
Earnings of equity investments
     (26,701 )     (105,415 )     (80,790 )     (75,030 )     (100,914 )     (141,370 )
Distributed income from equity investments
     -       3,500       -       77,150       103,550       62,637  
Capitalized interest
     (258 )     (6,646 )     (25,747 )     (18,963 )     (14,708 )     (5,492 )
Total fixed charges (from above)
     57,514       229,996       230,123       232,757       224,499       226,369  
                                                 
Earnings Available for Fixed Charges
   $ 109,859     $ 471,112     $ 375,066     $ 615,840     $ 536,397     $ 468,474  
                                                 
                                                 
Ratio of Earnings to Fixed Charges
     1.9       2.0       1.6       2.6       2.4       2.1