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, | ||||||||||||||||||||||
2013 | 2012 | 2011 (d) | 2010 | 2009 | 2008 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense, minority interest in net income of consolidated subsidiaries, and income from equity investees | $ | 76,285 | $ | (146,260 | ) | $ | 216,742 | $ | 240,211 | $ | 225,791 | $ | 256,994 | ||||||||||
Add: | |||||||||||||||||||||||
Fixed charges | 74,593 | 128,067 | 113,220 | 103,390 | 102,781 | 113,959 | |||||||||||||||||
Amortization of capitalized interest | 586 | 1,012 | 793 | 642 | 553 | 440 | |||||||||||||||||
Distributions from joint ventures | 4,652 | 6,364 | 14,374 | 9,625 | 9,700 | 2,835 | |||||||||||||||||
Less: Interest capitalized | (1,946 | ) | (7,737 | ) | (5,388 | ) | (3,701 | ) | (1,650 | ) | (5,108 | ) | |||||||||||
Total earnings | $ | 154,170 | $ | (18,554 | ) | $ | 339,741 | $ | 350,167 | $ | 337,175 | $ | 369,120 | ||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense (a) | $ | 61,576 | $ | 93,371 | $ | 82,758 | $ | 77,343 | $ | 78,622 | $ | 92,971 | |||||||||||
Amortization of debt issuance costs | 1,298 | 2,313 | 1,738 | 1,118 | 910 | 815 | |||||||||||||||||
Interest capitalized | 1,946 | 7,737 | 5,388 | 3,701 | 1,650 | 5,108 | |||||||||||||||||
Rental expense interest factor (b) | 9,773 | 24,646 | 23,336 | 21,228 | 21,599 | 15,065 | |||||||||||||||||
Total fixed charges | $ | 74,593 | $ | 128,067 | $ | 113,220 | $ | 103,390 | $ | 102,781 | $ | 113,959 | |||||||||||
Ratio of earnings to fixed charges | 2.1x | (c) | 3.0x | 3.4x | 3.3x | 3.2x |
(a) | The “Interest expense, net” reported in NuStar Energy L.P.'s consolidated statement of comprehensive income for includes investment income for the six months ended June 30, 2013 of $0.4 million and for years ended December 31, 2012, 2011 and 2010 of $0.9 million, $0.8 million and $0.2 million, respectively. |
(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 year ended December 31, 2012, earnings were insufficient to cover fixed charges by $146.6 million. The deficiency included the effect of $271.8 million of impairment losses mainly 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. |
(d) | Revised for discontinued operations in pre-tax income of subsidiaries that have not incurred fixed charges. |