Plains All American Pipeline (PAA) 10-K 2013 FY Annual report

Exhibit 12.1

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions)

	Year Ended December 31,
	2013			2012			2011			2010			2009
EARNINGS (1)
Pre-tax income from continuing operations before noncontrolling interest and income from equity investees	$	1,426		$	1,143		$	1,026		$	510		$	572
add: Fixed charges	424			380			328			321			283
add: Distributed income of equity investees	55			40			23			9			7
add: Amortization of capitalized interest	3			2			2			1			1
less: Capitalized interest	(38		)	(36		)	(25		)	(16		)	(12		)
Total Earnings	$	1,870		$	1,529		$	1,354		$	825		$	851
FIXED CHARGES (1)
Interest expensed and capitalized (2)	$	371		$	336		$	298		$	281		$	247
Amortization of debt expense	10			10			10			8			7
Portion of rent expense related to interest (33.33%)	43			34			20			32			29
Total Fixed Charges	$	424		$	380		$	328		$	321		$	283
RATIO OF EARNINGS TO FIXED CHARGES (3)	4.41		x	4.03		x	4.13		x	2.57		x	3.00		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 $30 million, $12 million, $20 million, $17 million and $11 million for the years ended December 31, 2013, 2012, 2011, 2010 and 2009, respectively.

(3)Ratios may not recalculate due to rounding.