Exhibit 12.01
VALERO ENERGY CORPORATION AND SUBSIDIARIES
STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED
CHARGES AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
(Millions of Dollars)
STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED
CHARGES AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
(Millions of Dollars)
| Nine Months | ||||||||||||||||||||||||
| Ended | Year Ended December 31, | |||||||||||||||||||||||
| September 30, | ||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Ratio of Earnings to Fixed Charges: | ||||||||||||||||||||||||
| Earnings: | ||||||||||||||||||||||||
| Income from continuing operations before income tax expense, minority interest in net income of consolidated subsidiaries, distributions on preferred securities of subsidiary trusts, and income from equity investees | $ | 3,267 | $ | 6,743 | $ | 7,872 | $ | 5,013 | $ | 2,726 | $ | 981 | ||||||||||||
| Add: | ||||||||||||||||||||||||
| Fixed charges | 482 | 658 | 566 | 474 | 410 | 396 | ||||||||||||||||||
| Amortization of capitalized interest | 14 | 15 | 9 | 8 | 7 | 6 | ||||||||||||||||||
| Distributions from equity investees | – | – | 47 | 50 | 42 | 26 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||
| Interest capitalized | (74 | ) | (107 | ) | (165 | ) | (66 | ) | (37 | ) | (26 | ) | ||||||||||||
| Distributions on preferred securities of subsidiary trusts | – | – | – | – | – | (17 | ) | |||||||||||||||||
| Minority interest in net income of NuStar Energy L.P. | – | – | – | – | – | (2 | ) | |||||||||||||||||
| Total earnings | $ | 3,689 | $ | 7,309 | $ | 8,329 | $ | 5,479 | $ | 3,148 | $ | 1,364 | ||||||||||||
| Fixed charges: | ||||||||||||||||||||||||
| Interest expense, net | $ | 261 | $ | 359 | $ | 212 | $ | 268 | $ | 260 | $ | 261 | ||||||||||||
| Interest capitalized | 74 | 107 | 165 | 66 | 37 | 26 | ||||||||||||||||||
| Rental expense interest factor (1) | 147 | 192 | 189 | 140 | 113 | 92 | ||||||||||||||||||
| Distributions on preferred securities of subsidiary trusts | – | – | – | – | – | 17 | ||||||||||||||||||
| Total fixed charges | $ | 482 | $ | 658 | $ | 566 | $ | 474 | $ | 410 | $ | 396 | ||||||||||||
| Ratio of earnings to fixed charges | 7.7 | x | 11.1 | x | 14.7 | x | 11.6 | x | 7.7 | x | 3.4 | x | ||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends: | ||||||||||||||||||||||||
| Total earnings | $ | 3,689 | $ | 7,309 | $ | 8,329 | $ | 5,479 | $ | 3,148 | $ | 1,364 | ||||||||||||
| Total fixed charges | $ | 482 | $ | 658 | $ | 566 | $ | 474 | $ | 410 | $ | 396 | ||||||||||||
| Preferred stock dividends | – | – | 3 | 20 | 19 | 7 | ||||||||||||||||||
| Total fixed charges and preferred stock dividends | $ | 482 | $ | 658 | $ | 569 | $ | 494 | $ | 429 | $ | 403 | ||||||||||||
| Ratio of earnings to fixed charges and preferred stock dividends | 7.7 | x | 11.1 | x | 14.6 | x | 11.1 | x | 7.3 | x | 3.4 | x | ||||||||||||
| (1) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |