EX-12.B 6 h66214exv12wb.htm EX-12.B exv12wb
Exhibit 12.B
COLORADO INTERSTATE GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
                                         
    For the Years ended December 31,  
    2008     2007     2006     2005     2004  
Earnings
                                       
Pre-tax income from continuing operations
  $ 149     $ 151     $ 139     $ 108     $ 108  
Income from equity investee
    (3 )     (2 )                  
 
                             
 
                                       
Pre-tax income from continuing operations before income from equity investee
    146       149       139       108       108  
 
                                       
Fixed charges
    42       61       51       38       30  
Distributed income of equity investee
    1                          
Capitalized interest
    (2 )     (1 )           (1 )      
 
                             
 
                                       
Total earnings available for fixed charges
  $ 187     $ 209     $ 190     $ 145     $ 138  
 
                             
 
                                       
Fixed charges
                                       
Interest and debt expense
  $ 41     $ 60     $ 50     $ 37     $ 29  
Interest component of rent
    1       1       1       1       1  
 
                             
 
                                       
Total fixed charges
  $ 42     $ 61     $ 51     $ 38     $ 30  
 
                             
 
                                       
Ratio of earnings to fixed charges
    4.5       3.4       3.7       3.8       4.6  
 
                             
     For purposes of computing these ratios, earnings means pre-tax income from continuing operations before:
    income from equity investee, adjusted to reflect actual distributions from equity investments; and
 
    fixed charges;
     less:
    capitalized interest.
     Fixed charges means the sum of the following:
    interest costs, not including interest on tax liabilities which is included in income tax expense our income statement;
 
    amortization of debt costs; and
 
    that portion of rental expense which we believe represents an interest factor.