EXHIBIT 12.1
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Provided below is the ratio of earnings to fixed charges for Spectra Energy Capital, LLC for each of the past five years. The ratio of earnings to fixed charges and preferred stock dividends for Spectra Energy Capital, LLC is calculated using the SEC guidelines.(a)
| Year Ended December 31, | ||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||
| (dollars in millions) | ||||||||||||||||
Earnings as defined for fixed charges calculation | ||||||||||||||||
Add: | ||||||||||||||||
Pretax (loss) income from continuing operations(b)(e) | $ | 767 | $ | 2,492 | $ | 685 | $ | (615 | ) | $ | 388 | |||||
Fixed charges | 759 | 878 | 1,135 | 1,243 | 1,219 | |||||||||||
Distributed income of equity investees | 860 | 472 | 140 | 263 | 369 | |||||||||||
Deduct: | ||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | 27 | 27 | 31 | 102 | 157 | |||||||||||
Interest capitalized(c) | 35 | 41 | 36 | 46 | 161 | |||||||||||
Total earnings (as defined for the Fixed Charges calculation) | $ | 2,324 | $ | 3,774 | $ | 1,893 | $ | 743 | $ | 1,658 | ||||||
Fixed charges: | ||||||||||||||||
Interest on debt, including capitalized portions | $ | 718 | $ | 827 | $ | 1,080 | $ | 1,117 | $ | 1,041 | ||||||
Estimate of interest within rental expense | 14 | 24 | 24 | 24 | 21 | |||||||||||
Preference security dividend requirements of consolidated subsidiaries | 27 | 27 | 31 | 102 | 157 | |||||||||||
Total fixed charges | $ | 759 | $ | 878 | $ | 1,135 | $ | 1,243 | $ | 1,219 | ||||||
Ratio of earnings to fixed charges(e) | 3.1 | 4.3 | 1.7 | (d | ) | 1.4 | ||||||||||
| (a) | Certain prior year Income Statement amounts above have been adjusted for businesses reclassified to discontinued operations during 2006. |
| (b) | Excludes minority interest expenses and income or loss from equity investees. |
| (c) | Excludes equity costs related to AFUDC that are included in Other Income and Expenses in the Consolidated Statements of Operations. |
| (d) | Earnings were inadequate to cover fixed charges by $500 million for the year ended December 31, 2003. |
| (e) | Includes pre-tax gains on the sale of TEPPCO GP, Inc. and TEPPCO Partners, L.P. of approximately $0.9 billion, net of minority interest, in 2005. |