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, 2009 | Year Ended December 31, | |||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income from continuing operations before provision for income taxes and income from equity investees | $ | 126,619 | $ | 256,994 | $ | 154,913 | $ | 149,885 | $ | 110,069 | $ | 77,074 | ||||||||||||
Add: | ||||||||||||||||||||||||
Fixed charges | 52,011 | 113,959 | 91,594 | 75,829 | 46,211 | 21,625 | ||||||||||||||||||
Amortization of capitalized Interest | 270 | 440 | 255 | 126 | 80 | 60 | ||||||||||||||||||
Distributions from joint ventures | 4,000 | 2,835 | 544 | 5,268 | 4,657 | 1,373 | ||||||||||||||||||
Less: Interest capitalized | (923 | ) | (5,108 | ) | (5,995 | ) | (1,758 | ) | (1,008 | ) | (192 | ) | ||||||||||||
Total earnings | $ | 181,977 | $ | 369,120 | $ | 241,311 | $ | 229,350 | $ | 160,009 | $ | 99,940 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense (1) | $ | 40,389 | $ | 92,971 | $ | 77,584 | $ | 68,241 | $ | 41,616 | $ | 20,630 | ||||||||||||
Amortization of debt issuance costs | 451 | 815 | 1,030 | 726 | 622 | 407 | ||||||||||||||||||
Interest capitalized | 923 | 5,108 | 5,995 | 1,758 | 1,008 | 192 | ||||||||||||||||||
Rental expense interest factor (2) | 10,248 | 15,065 | 6,985 | 5,104 | 2,965 | 396 | ||||||||||||||||||
Total fixed charges | $ | 52,011 | $ | 113,959 | $ | 91,594 | $ | 75,829 | $ | 46,211 | $ | 21,625 | ||||||||||||
Ratio of earnings to fixed charges | 3.5 | x | 3.2 | x | 2.6 | x | 3.0 | x | 3.5 | x | 4.6 | x | ||||||||||||
(1) | The “Interest expense, net” reported in NuStar Energy L.P.’s consolidated statement of income for the six months ended June 30, 2009 includes investment income of $105,000. |
(2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |