Plains All American Pipeline (PAA) 10-Q 2012 Q3 Quarterly report

EXHIBIT 12.1

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions)

	Nine Months
	Ended
	September 30,			Year Ended December 31,
	2012			2011			2010			2009			2008			2007
EARNINGS (1)
Pre-tax income from continuing operations before noncontrolling interest and income from equity investees	$	815		$	1,026		$	510		$	572		$	430		$	350
add: Fixed charges	280			328			321			283			264			233
add: Distributed income of equity investees	27			23			9			7			10			2
add: Amortization of capitalized interest	2			2			1			1			1			—
less: Capitalized interest	(27		)	(25		)	(16		)	(12		)	(17		)	(14		)
Total Earnings	$	1,097		$	1,354		$	825		$	851		$	688		$	571
FIXED CHARGES (1)
Interest expensed and capitalized (2)	$	251		$	298		$	281		$	247		$	233		$	220
Amortization of debt expense	8			10			8			7			4			3
Portion of rent expense related to interest (33.33%)	21			20			32			29			27			10
Total Fixed Charges	$	280		$	328		$	321		$	283		$	264		$	233
RATIO OF EARNINGS TO FIXED CHARGES (3)	3.91		x	4.13		x	2.57		x	3.00		x	2.60		x	2.45		x

(1)For purposes of computing the ratio of earnings to fixed charges, “earnings” consists of pre-tax income from continuing operations before income from equity investees plus fixed charges (excluding capitalized interest), distributed income of equity investees and amortization of capitalized interest. “Fixed charges” represents interest incurred (whether expensed or capitalized), amortization of debt expense (including discounts and premiums relating to indebtedness) and the portion of rental expense on leases deemed to be the equivalent of interest.

(2)Includes interest costs attributable to borrowings for hedged inventory purchases of $9 million for the nine months ended September 30, 2012 and $20 million, $17 million, $11 million, $21 million and $44 million for each of the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively.

(3)Ratios may not recalculate due to rounding.