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, | Year Ended December 31, | |||||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before provision for income taxes and income from equity investees | $ | 126,109 | $ | 149,885 | $ | 110,069 | $ | 77,074 | $ | 67,177 | $ | 52,350 | ||||||||||||
Add: | ||||||||||||||||||||||||
Fixed charges | 68,108 | 75,829 | 46,211 | 21,625 | 16,443 | 5,492 | ||||||||||||||||||
Amortization of capitalized interest | 185 | 126 | 80 | 60 | 55 | 48 | ||||||||||||||||||
Distributions from joint ventures | 544 | 5,268 | 4,657 | 1,373 | 2,803 | 3,590 | ||||||||||||||||||
Less: Interest capitalized | (4,070 | ) | (1,758 | ) | (1,008 | ) | (192 | ) | (123 | ) | (255 | ) | ||||||||||||
Total earnings | $ | 190,876 | $ | 229,350 | $ | 160,009 | $ | 99,940 | $ | 86,355 | $ | 61,225 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense (1) | $ | 58,291 | $ | 68,241 | $ | 41,616 | $ | 20,630 | $ | 15,291 | $ | 4,968 | ||||||||||||
Amortization of debt issuance costs | 688 | 726 | 622 | 407 | 740 | 160 | ||||||||||||||||||
Interest capitalized | 4,070 | 1,758 | 1,008 | 192 | 123 | 255 | ||||||||||||||||||
Rental expense interest factor (2) | 5,059 | 5,104 | 2,965 | 396 | 289 | 109 | ||||||||||||||||||
Total fixed charges | $ | 68,108 | $ | 75,829 | $ | 46,211 | $ | 21,625 | $ | 16,443 | $ | 5,492 | ||||||||||||
Ratio of earnings to fixed charges | 2.8x | 3.0x | 3.5x | 4.6x | 5.3x | 11.1x | ||||||||||||||||||
(1) | The “interest expense, net” reported in NuStar Energy L.P.’s consolidated statement of income for the nine months ended September 30, 2007 includes investment income of $1,292,000. |
(2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |