NuStar Energy (NS) 10-Q 2015 Q3 Quarterly report

Exhibit 12.01

NUSTAR ENERGY L.P.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Thousands of Dollars, Except Ratio)

	Nine Months
	Ended
	September 30,			Years Ended December 31,
	2015			2014			2013			2012			2011			2010
Earnings:
Income (loss) from continuing operations before provision for income taxes and income from equity investees	$	256,263		$	220,174		$	(132,786	)	$	(132,173	)	$	225,771		$	244,917
Add:
Fixed charges	113,130			153,236			149,090			122,286			109,825			102,642
Amortization of capitalized interest	1,168			1,385			1,216			1,012			793			642
Distributions from joint ventures	2,500			7,587			7,956			6,364			14,374			9,625
Less: Interest capitalized	(4,613		)	(5,667		)	(4,501		)	(7,737		)	(5,388		)	(3,701		)
Total earnings	$	368,448		$	376,715		$	20,975		$	(10,248	)	$	345,375		$	354,125
Fixed charges:
Interest expense, net	$	98,309		$	132,281		$	127,119		$	90,535		$	81,539		$	77,764
Interest capitalized	4,613			5,667			4,501			7,737			5,388			3,701
Rental expense interest factor (a)	10,208			15,288			17,470			24,014			22,898			21,177
Total fixed charges	$	113,130		$	153,236		$	149,090		$	122,286		$	109,825		$	102,642
Ratio of earnings to fixed charges	3.3x			2.5x			(b)			(c)			3.1x			3.5x

(a) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.

(b) For the year ended December 31, 2013, earnings were insufficient to cover fixed charges by $128.1 million. The deficiency included a goodwill impairment loss of $304.5 million related to the Statia terminals reporting unit.

(c) For the year ended December 31, 2012, earnings were insufficient to cover fixed charges by $132.5 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.