EX-12.1 5 a07-31420_1ex12d1.htm EX-12.1

Exhibit 12.1

 

Equitable Resources, Inc.

Computation of Ratios of Earnings to Fixed Charges

(Dollars in Thousands)

 

 

 

Nine Months Ended

 

Years Ended December 31,

 

 

September 30, 2007

 

2006

 

2005

 

2004 (1)

 

2003

 

2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income before income taxes, discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

and cumulative effect of accounting changes

 

$

309,266

 

$

325,731

 

$

411,612

 

$

453,743

 

$

251,785

 

$

220,238

 

Minus: equity (earnings) loss of non consolidated investments

 

 

 

 

 

 

 

 

 

 

 

 

 

and minority interest

 

(2,198

)

(260

)

(762

)

(856

)

(3,323

)

15,265

 

Plus: fixed charges

 

40,402

 

51,870

 

47,099

 

44,473

 

43,828

 

34,234

 

Minus: capitalized interest

 

(3,022

)

(633

)

(450

)

(146

)

(559

)

(237

)

Earnings

 

$

344,448

 

$

376,708

 

$

457,499

 

$

497,214

 

$

291,731

 

$

269,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

35,604

 

$

48,494

 

$

44,437

 

$

42,520

 

$

41,530

 

$

32,221

 

Plus: capitalized interest and allowance for borrowed funds used during construction

 

3,022

 

633

 

450

 

146

 

559

 

237

 

Plus: estimated interest component of rental expense

 

1,776

 

2,743

 

2,212

 

1,807

 

1,739

 

1,776

 

Fixed Charges

 

$

40,402

 

$

51,870

 

$

47,099

 

$

44,473

 

$

43,828

 

$

34,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

8.53

 

7.26

 

9.71

 

11.18

 

6.66

 

7.87

 

 

(1)

In the second quarter of 2004, Westport Resources Corporation and Kerr-McGee Corporation completed a merger. The Company recognized a gain of $217.2 million on the exchange of the Westport shares for Kerr-McGee shares in the merger. If this gain is removed from our earnings, the earnings to fixed charges ratio for the year ended December 31, 2004 would be 6.30%.