Plains All American Pipeline (PAA) 10-Q 2013 Q1 Quarterly report

EXHIBIT 12.1

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions)

	Three Months
	Ended
	March 31,			Year Ended December 31,
	2013			2012			2011			2010			2009			2008
EARNINGS (1)
Pre-tax income from continuing operations before noncontrolling interest and income from equity investees	$	578		$	1,143		$	1,026		$	510		$	572		$	430
add: Fixed charges	103			380			328			321			283			264
add: Distributed income of equity investees	11			40			23			9			7			10
add: Amortization of capitalized interest	1			2			2			1			1			1
less: Capitalized interest	(9		)	(36		)	(25		)	(16		)	(12		)	(17		)
Total Earnings	$	684		$	1,529		$	1,354		$	825		$	851		$	688
FIXED CHARGES (1)
Interest expensed and capitalized (2)	$	91		$	336		$	298		$	281		$	247		$	233
Amortization of debt expense	2			10			10			8			7			4
Portion of rent expense related to interest (33.33%)	10			34			20			32			29			27
Total Fixed Charges	$	103		$	380		$	328		$	321		$	283		$	264
RATIO OF EARNINGS TO FIXED CHARGES (3)	6.62		x	4.03		x	4.13		x	2.57		x	3.00		x	2.60		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 $5 million for the three months ended March 31, 2013 and $12 million, $20 million, $17 million, $11 million and $21 million for the years ended December 31, 2012, 2011, 2010, 2009 and 2008, respectively.

(3)Ratios may not recalculate due to rounding.