Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
Six Months | |||||||||||||||||||||||
Ended | |||||||||||||||||||||||
June 30, | Years Ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Income from continuing operations before provision for income taxes and income from equity investees | $ | (205,591 | ) | $ | 227,022 | $ | 240,211 | $ | 225,791 | $ | 256,994 | $ | 154,913 | ||||||||||
Add: | |||||||||||||||||||||||
Fixed charges | 62,523 | 113,220 | 103,390 | 102,781 | 113,959 | 91,594 | |||||||||||||||||
Amortization of capitalized interest | 477 | 793 | 642 | 553 | 440 | 255 | |||||||||||||||||
Distributions from joint ventures | 3,266 | 14,374 | 9,625 | 9,700 | 2,835 | 544 | |||||||||||||||||
Less: Interest capitalized | (4,114 | ) | (5,388 | ) | (3,701 | ) | (1,650 | ) | (5,108 | ) | (5,995 | ) | |||||||||||
Total earnings | $ | (143,439 | ) | $ | 350,021 | $ | 350,167 | $ | 337,175 | $ | 369,120 | $ | 241,311 | ||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense (a) | $ | 45,573 | $ | 82,758 | $ | 77,343 | $ | 78,622 | $ | 92,971 | $ | 77,584 | |||||||||||
Amortization of debt issuance costs | 1,089 | 1,738 | 1,118 | 910 | 815 | 1,030 | |||||||||||||||||
Interest capitalized | 4,114 | 5,388 | 3,701 | 1,650 | 5,108 | 5,995 | |||||||||||||||||
Rental expense interest factor (b) | 11,747 | 23,336 | 21,228 | 21,599 | 15,065 | 6,985 | |||||||||||||||||
Total fixed charges | $ | 62,523 | $ | 113,220 | $ | 103,390 | $ | 102,781 | $ | 113,959 | $ | 91,594 | |||||||||||
Ratio of earnings to fixed charges | (c) | 3.1x | 3.4x | 3.3x | 3.2x | 2.6x |
(a) | The “Interest expense, net” reported in NuStar Energy L.P.'s consolidated statement of income for the six months ended June 30, 2012 includes investment income of $0.5 million. |
(b) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |
(c) | For the six months ended June 30, 2012, earnings were insufficient to cover fixed charges by $77.9 million. The deficiency included the effect of a $266.4 million pre-tax impairment loss resulting from the write-down of the carrying value of our long-lived assets related to our asphalt operations, including fixed assets, goodwill, intangible assets and other long-term assets. |