Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
| Three Months Ended March 31, 2008 | Year Ended December 31, | |||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before provision for | $ | 58,230 | $ | 154,913 | $ | 149,885 | $ | 110,069 | $ | 77,074 | $ | 67,177 | ||||||||||||
Add: | ||||||||||||||||||||||||
Fixed charges | 22,232 | 91,594 | 75,829 | 46,211 | 21,625 | 16,443 | ||||||||||||||||||
Amortization of capitalized interest | 95 | 255 | 126 | 80 | 60 | 55 | ||||||||||||||||||
Distributions from joint ventures | 500 | 544 | 5,268 | 4,657 | 1,373 | 2,803 | ||||||||||||||||||
Less: Interest capitalized | (1,819 | ) | (5,995 | ) | (1,758 | ) | (1,008 | ) | (192 | ) | (123 | ) | ||||||||||||
Total earnings | $ | 79,238 | $ | 241,311 | $ | 229,350 | $ | 160,009 | $ | 99,940 | $ | 86,355 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense (1) | $ | 18,321 | $ | 77,584 | $ | 68,241 | $ | 41,616 | $ | 20,630 | $ | 15,291 | ||||||||||||
Amortization of debt issuance costs | 167 | 1,030 | 726 | 622 | 407 | 740 | ||||||||||||||||||
Interest capitalized | 1,819 | 5,995 | 1,758 | 1,008 | 192 | 123 | ||||||||||||||||||
Rental expense interest factor (2) | 1,925 | 6,985 | 5,104 | 2,965 | 396 | 289 | ||||||||||||||||||
Total fixed charges | $ | 22,232 | $ | 91,594 | $ | 75,829 | $ | 46,211 | $ | 21,625 | $ | 16,443 | ||||||||||||
Ratio of earnings to fixed charges | 3.6x | 2.6x | 3.0x | 3.5x | 4.6x | 5.3x | ||||||||||||||||||
(1) | The “Interest expense, net” reported in NuStar Energy L.P.’s consolidated statement of income for the three months ended March 31, 2008 includes investment income of $1,623,000. |
(2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |