EX-12.1 2 kmiex12_1.htm KMI EXHIBIT 12.1 Kinder Morgan, Inc. Exhibit 12.1

Exhibit 12.1


KINDER MORGAN, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In US$ millions, except ratio of earnings to fixed charges)


 

Nine Months Ended
September 30,

 

Year Ended December 31,

 

2006

 

2005

 

2005

 

2004

 

2003

 

2002

 

2001

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes, extraordinary gains or losses, equity income and minority interest1

$

 

 

875.5

 

$

 

 

176.7

 

$

 

 

304.2

 

$

 

 

194.4

 

$

 

 

161.8

 

$

 

 

58.0

 

$

136.3

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

648.0

 

 

137.0

 

 

210.0

 

 

164.2

 

 

164.2

 

 

188.4

 

 

246.1

Distributed income of equity investees

 

60.9

 

 

395.0

 

 

538.9

 

 

445.0

 

 

374.7

 

 

314.2

 

 

238.8

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TRUPS requirement2

 

-

 

 

-

 

 

-

 

 

-

 

 

11.0

 

 

21.9

 

 

21.9

Capitalized interest from

continuing operations1

 

19.2

 

 

0.5

 

 

1.3

 

 

0.7

 

 

0.5

 

 

1.4

 

 

4.2

Capitalized interest from discontinued operations

 

0.9

 

 

0.1

 

 

0.2

 

 

0.3

 

 

0.1

 

 

0.4

 

 

0.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest in pre-tax income of  subsidiary with no fixed charges

 

46.6

 

 

46.4

 

 

45.0

 

 

50.4

 

 

41.5

 

 

33.8

 

 

14.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings as adjusted

$

1,517.7

 

$

661.7

 

$

1,006.6

 

$

752.2

 

$

647.6

 

$

503.1

 

$

579.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest, amortization of debt discount, premium and issuance costs1

$

592.6

 

$

122.5

 

$

188.9

 

$

147.2

 

$

143.5

 

$

153.7

 

$

206.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest from continuing operations1

 

19.2

 

 

0.5

 

 

1.3

 

 

0.7

 

 

0.5

 

 

1.4

 

 

4.2

Capitalized interest from discontinued operations

 

0.9

 

 

0.1

 

 

0.2

 

 

0.3

 

 

0.1

 

 

0.4

 

 

0.6

Interest expense from discontinued operations

 

7.0

 

 

8.1

 

 

11.3

 

 

7.9

 

 

7.1

 

 

8.2

 

 

10.2

Estimated interest portion of rental expenses

 

28.3

 

 

5.8

 

 

8.3

 

 

8.1

 

 

2.0

 

 

2.8

 

 

3.2

TRUPS requirement2

 

-

 

 

-

 

 

-

 

 

-

 

 

11.0

 

 

21.9

 

 

21.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

$

648.0

 

$

137.0

 

$

210.0

 

$

164.2

 

$

164.2

 

$

188.4

 

$

246.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

2.34

 

 

4.83

 

 

4.79

 

 

4.58

 

 

3.94

 

 

2.67

 

 

2.36


1.

During 2006, we entered into a definitive agreement to sell our U.S.-based natural gas distribution operations. In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the financial results of these operations have been excluded and reclassified to discontinued operations for all periods presented. In addition, the results of operations of Terasen’s discontinued Water and Utility Services, which we acquired November 30, 2005, have been excluded and reclassified to discontinued operations for the nine months ended September 30, 2006 and the year ended December 31, 2005.

2.

The expense associated with our capital trust securities was included in minority interest prior to the third quarter of 2003. Due to our adoption of SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, and our subsequent adoption of Financial Accounting Standards Board Interpretation No. 46 (revised December 2004), Consolidation of Variable Interest Entities, the expense associated with these securities was included in interest expense beginning with the third quarter of 2003.