Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
Years Ended December 31, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Earnings: | |||||||||||||||||||
Income from continuing operations before provision for income taxes and income from equity investees | $ | 227,022 | $ | 240,211 | $ | 225,791 | $ | 256,994 | $ | 154,913 | |||||||||
Add: | |||||||||||||||||||
Fixed charges | 113,220 | 103,390 | 102,781 | 113,959 | 91,594 | ||||||||||||||
Amortization of capitalized interest | 793 | 642 | 553 | 440 | 255 | ||||||||||||||
Distributions from joint ventures | 14,374 | 9,625 | 9,700 | 2,835 | 544 | ||||||||||||||
Less: Interest capitalized | (5,388 | ) | (3,701 | ) | (1,650 | ) | (5,108 | ) | (5,995 | ) | |||||||||
Total earnings | $ | 350,021 | $ | 350,167 | $ | 337,175 | $ | 369,120 | $ | 241,311 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense (1) | $ | 82,758 | $ | 77,343 | $ | 78,622 | $ | 92,971 | $ | 77,584 | |||||||||
Amortization of debt issuance costs | 1,738 | 1,118 | 910 | 815 | 1,030 | ||||||||||||||
Interest capitalized | 5,388 | 3,701 | 1,650 | 5,108 | 5,995 | ||||||||||||||
Rental expense interest factor (2) | 23,336 | 21,228 | 21,599 | 15,065 | 6,985 | ||||||||||||||
Total fixed charges | $ | 113,220 | $ | 103,390 | $ | 102,781 | $ | 113,959 | $ | 91,594 | |||||||||
Ratio of earnings to fixed charges | 3.1x | 3.4x | 3.3x | 3.2x | 2.6x |
(1) | “Interest expense, net” reported on NuStar Energy L.P.'s consolidated statements of income for the years ended December 31, 2011, 2010 and 2009 includes investment income of $0.8 million, $0.2 million and $0.1 million, respectively. |
(2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |