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, | ||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before provision for income taxes and income from equity investees | $ | 225,791 | $ | 256,994 | $ | 154,913 | $ | 149,885 | $ | 110,069 | ||||||||||
Add: | ||||||||||||||||||||
Fixed charges | 102,781 | 113,959 | 91,594 | 75,829 | 46,211 | |||||||||||||||
Amortization of capitalized Interest | 553 | 440 | 255 | 126 | 80 | |||||||||||||||
Distributions from joint ventures | 9,700 | 2,835 | 544 | 5,268 | 4,657 | |||||||||||||||
Less: Interest capitalized | (1,650 | ) | (5,108 | ) | (5,995 | ) | (1,758 | ) | (1,008 | ) | ||||||||||
Total earnings | $ | 337,175 | $ | 369,120 | $ | 241,311 | $ | 229,350 | $ | 160,009 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense (1) | $ | 78,622 | $ | 92,971 | $ | 77,584 | $ | 68,241 | $ | 41,616 | ||||||||||
Amortization of debt issuance costs | 910 | 815 | 1,030 | 726 | 622 | |||||||||||||||
Interest capitalized | 1,650 | 5,108 | 5,995 | 1,758 | 1,008 | |||||||||||||||
Rental expense interest factor (2) | 21,599 | 15,065 | 6,985 | 5,104 | 2,965 | |||||||||||||||
Total fixed charges | $ | 102,781 | $ | 113,959 | $ | 91,594 | $ | 75,829 | $ | 46,211 | ||||||||||
Ratio of earnings to fixed charges | 3.3 | x | 3.2 | x | 2.6 | x | 3.0 | x | 3.5 | x | ||||||||||
| (1) | The “Interest expense, net” reported in NuStar Energy L.P.’s consolidated statement of income for the years ended December 31, 2009, 2008 and 2007 includes investment income of $0.1 million, $3.0 million and $2.1 million, respectively. |
| (2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |