Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
Nine Months | Years Ended December 31, | ||||||||||||||||||||||
Ended | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Income from continuing operations before provision for income taxes and income from equity investees | $ | 197,716 | $ | 240,211 | $ | 225,791 | $ | 256,994 | $ | 154,913 | $ | 149,885 | |||||||||||
Add: | |||||||||||||||||||||||
Fixed charges | 84,282 | 103,390 | 102,781 | 113,959 | 91,594 | 75,829 | |||||||||||||||||
Amortization of capitalized interest | 579 | 642 | 553 | 440 | 255 | 126 | |||||||||||||||||
Distributions from joint ventures | 9,397 | 9,625 | 9,700 | 2,835 | 544 | 5,268 | |||||||||||||||||
Less: Interest capitalized | (4,103 | ) | (3,701 | ) | (1,650 | ) | (5,108 | ) | (5,995 | ) | (1,758 | ) | |||||||||||
Total earnings | $ | 287,871 | $ | 350,167 | $ | 337,175 | $ | 369,120 | $ | 241,311 | $ | 229,350 | |||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense (1) | $ | 61,945 | $ | 77,343 | $ | 78,622 | $ | 92,971 | $ | 77,584 | $ | 68,241 | |||||||||||
Amortization of debt issuance costs | 1,281 | 1,118 | 910 | 815 | 1,030 | 726 | |||||||||||||||||
Interest capitalized | 4,103 | 3,701 | 1,650 | 5,108 | 5,995 | 1,758 | |||||||||||||||||
Rental expense interest factor (2) | 16,953 | 21,228 | 21,599 | 15,065 | 6,985 | 5,104 | |||||||||||||||||
Total fixed charges | $ | 84,282 | $ | 103,390 | $ | 102,781 | $ | 113,959 | $ | 91,594 | $ | 75,829 | |||||||||||
Ratio of earnings to fixed charges | 3.4x | 3.4x | 3.3x | 3.2x | 2.6x | 3.0x |
(1) | The “Interest expense, net” reported in NuStar Energy L.P.'s consolidated statement of income for the nine months ended September 30, 2011 includes investment income of $582,000. |
(2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |