Exhibit 12.1
ENERGY TRANSFER PARTNERS, L.P. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except for ratio amounts)
(Unaudited)
In April 2015, a wholly-owned subsidiary of the Partnership merged with Regency, with Regency surviving as a wholly-owned subsidiary of the Partnership (the “Regency Merger”). The Regency Merger was a combination of entities under common control; therefore, Regency’s assets and liabilities were not adjusted. The Partnership’s consolidated financial statements have been retrospectively adjusted to reflect consolidation of Regency for all prior periods subsequent to May 26, 2010 (the date ETE acquired Regency’s general partner).
Years Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Fixed Charges: | |||||||||||||||||||
Interest expense, net | $ | 1,317 | $ | 1,291 | $ | 1,165 | $ | 1,013 | $ | 788 | |||||||||
Capitalized interest | 200 | 163 | 101 | 45 | 101 | ||||||||||||||
Interest charges included in rental expense | 9 | 19 | 17 | 16 | 6 | ||||||||||||||
Distribution to the Series A Convertible Redeemable Preferred Units | — | 3 | 3 | 6 | 8 | ||||||||||||||
Accretion of the Series A Convertible Redeemable Preferred Units | — | — | — | — | 1 | ||||||||||||||
Total fixed charges | 1,526 | 1,476 | 1,286 | 1,080 | 904 | ||||||||||||||
Earnings: | |||||||||||||||||||
Income from continuing operations before income tax expense and noncontrolling interest | 438 | 1,398 | 1,593 | 810 | 1,817 | ||||||||||||||
Less: equity in earnings of unconsolidated affiliates | 59 | 469 | 332 | 236 | 212 | ||||||||||||||
Total earnings | 379 | 929 | 1,261 | 574 | 1,605 | ||||||||||||||
Add: | |||||||||||||||||||
Fixed charges | 1,526 | 1,476 | 1,286 | 1,080 | 904 | ||||||||||||||
Amortization of capitalized interest | 18 | 11 | 8 | 6 | 5 | ||||||||||||||
Distributed income of equity investees | 406 | 440 | 291 | 313 | 208 | ||||||||||||||
Less: | |||||||||||||||||||
Interest capitalized | (200 | ) | (163 | ) | (101 | ) | (45 | ) | (101 | ) | |||||||||
Income available for fixed charges | $ | 2,129 | $ | 2,693 | $ | 2,745 | $ | 1,928 | $ | 2,621 | |||||||||
Ratio of earnings to fixed charges | 1.40 | 1.82 | 2.13 | 1.79 | 2.90 |