Energy Transfer Operating (ET+E) 10-Q 2014 Q2 Quarterly report

Exhibit 12.1

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

	Six Months Ended June 30, 2014
	(in millions)
Fixed Charges:
Interest cost and debt expense	$	63
Interest allocable to rental expense (1)	2
Total	$	65
Earnings:
Income before income tax expense (2)	$	281
Income before income tax expense attributable to noncontrolling interests	(8		)
Equity in income of 50 percent or less owned affiliated companies	(11		)
Dividends received from 50 percent or less owned affiliated companies (3)	6
Fixed charges	65
Interest capitalized	(26		)
Amortization of previously capitalized interest	1
Total	$	308
Ratio of Earnings to Fixed Charges	4.7

⁽¹⁾ Represents one-third of the total operating lease rental expense which is that portion deemed to be interest.

⁽²⁾ Represents income before income tax expense for all consolidated entities, including Inland Corporation ("Inland"), Mid-Valley Pipeline Company ("Mid-Valley"), West Texas Gulf Pipe Line Company ("West Texas Gulf") and Price River Terminal, LLC ("PRT").

⁽³⁾ Represents dividends received from equity-method investments, which excludes dividends from Inland, Mid-Valley, West Texas Gulf and PRT.