EX-12 8 a2124853zex-12.htm EXHIBIT 12
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Exhibit 12

PRO FORMA
PANHANDLE EASTERN PIPE LINE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 
   For Period of
June 12 - September 30,
   For Period of
January 1 - June 11,
   Year Ended
December 31,
  
 
   2003
   2003
   2002
  
 
   (dollars in millions)

  
EARNINGS:                    
Consolidated pre-tax income from continuing operations before minority interest and equity earnings (losses)   $ 40.8   $ 78.1   $ 125.5  
Equity earnings (losses)     —     0.4     (7.0 )
Pro forma earnings adjustment     (3.9 )   (4.7 )   30.2  
Fixed charges     18.6     29.5     62.0  
Minority interest     —     —     (3.5 )
Capitalized interest     (0.9 )   (1.0 )   (3.0 )
   
 
 
 
  Earnings   $ 54.6   $ 102.3   $ 204.2  
   
 
 
 

FIXED CHARGES:
 
 
 
 
 
 
 
 
 
 

Interest
 
$
19.4
 
$
33.0
 
$
73.8
 
Net amortization of debt discount and premium and issuance expense     (6.0 )   2.4     2.6  
Capitalized interest     0.9     1.0     3.0  
Interest portion of rental expense     0.4     0.6     1.8  
Pro forma interest adjustments     3.9     (7.5 )   (19.2 )
   
 
 
 
      —     —     —  
      —     —     —  
  Fixed charges   $ 18.6   $ 29.5   $ 62.0  
   
 
 
 
Ratio of earnings to fixed charges     2.9     3.5     3.3  

1

PANHANDLE EASTERN PIPE LINE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 
   For Period of
June 12-
September 30,
   For Period of
January 1-
June 11,
   Year Ended
December 31,
   For Period of March
29- December 31,
   For Period of
January 1-
March 28,
   Years Ended
December 31,
  
 
   2003
   2003
   2002
   2001
   2000
   1999
   1999
   1998
  
 
   (dollars in millions)

  
EARNINGS:                                                  
Consolidated pre-tax income from continuing operations before minority interest and equity earnings (losses)   $ 40.8   $ 78.1   $ 125.5   $ 91.9   $ 107.1   $ 68.5   $ 52.8   $ 142.2  
Equity earnings (losses)     —     0.4     (7.0 )   (0.8 )   0.2     (0.2 )   0.2     5.6  
Fixed charges     14.7     37.0     81.2     87.3     86.7     62.9     19.7     83.8  
Minority interest     —     —     (3.5 )   —     —     —     —     —  
Capitalized interest     (0.9 )   (1.0 )   (3.0 )   (3.0 )   (0.2 )   (0.3 )   (0.1 )   (2.8 )
   
 
 
 
 
 
 
 
 
  Earnings   $ 54.6   $ 114.5   $ 193.2   $ 175.4   $ 193.8   $ 130.9   $ 72.6   $ 228.8  
   
 
 
 
 
 
 
 
 

FIXED CHARGES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest     19.4   $ 33.0   $ 73.8   $ 82.0   $ 84.1   $ 58.1   $ 18.4   $ 77.0  
Net amortization of debt discount and premium and issuance expense     (6.0 )   2.4     2.6     0.8     0.6     0.7     0.2     0.2  
Capitalized interest     0.9     1.0     3.0     3.0     0.2     0.3     0.1     2.8  
Interest portion of rental expense     0.4     0.6     1.8     1.5     1.8     3.8     1.0     3.8  
   
 
 
 
 
 
 
 
 
  Fixed charges   $ 14.7   $ 37.0   $ 81.2   $ 87.3   $ 86.7   $ 62.9   $ 19.7   $ 83.8  
   
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges     3.7     3.1     2.4     2.0     2.2     2.1     3.6     2.7  

2



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