Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
Year Ended December 31, | ||||||||||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||
Income from continuing operations before provision for income taxes and income from equity investees | $ | 256,994 | $ | 154,913 | $ | 149,885 | $ | 110,069 | $ | 77,074 | ||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||
Fixed charges | 113,959 | 91,594 | 75,829 | 46,211 | 21,625 | |||||||||||||||||||||||||
Amortization of capitalized Interest | 440 | 255 | 126 | 80 | 60 | |||||||||||||||||||||||||
Distributions from joint ventures | 2,835 | 544 | 5,268 | 4,657 | 1,373 | |||||||||||||||||||||||||
Less: Interest capitalized | (5,108 | ) | (5,995 | ) | (1,758 | ) | (1,008 | ) | (192 | ) | ||||||||||||||||||||
Total earnings | $ | 369,120 | $ | 241,311 | $ | 229,350 | $ | 160,009 | $ | 99,940 | ||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||||
Interest expense (1) | $ | 92,971 | $ | 77,584 | $ | 68,241 | $ | 41,616 | $ | 20,630 | ||||||||||||||||||||
Amortization of debt issuance costs | 815 | 1,030 | 726 | 622 | 407 | |||||||||||||||||||||||||
Interest capitalized | 5,108 | 5,995 | 1,758 | 1,008 | 192 | |||||||||||||||||||||||||
Rental expense interest factor (2) | 15,065 | 6,985 | 5,104 | 2,965 | 396 | |||||||||||||||||||||||||
Total fixed charges | $ | 113,959 | $ | 91,594 | $ | 75,829 | $ | 46,211 | $ | 21,625 | ||||||||||||||||||||
Ratio of earnings to fixed charges | 3.2x | 2.6x | 3.0x | 3.5x | 4.6x | |||||||||||||||||||||||||
(1) | The “Interest expense, net” reported in NuStar Energy L.P.’s consolidated statements of income for the years ended December 31, 2008, 2007 and 2006 includes investment income of $2,968,000, $2,098,000 and $2,701,000, respectively. |
(2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |