Energy Transfer Operating (ET+E) 10-K 2016 FY Annual report

Exhibit 12.1

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

	Year Ended December 31, 2016
	(in millions)
Fixed Charges:
Interest cost and debt expense	$	268
Interest allocable to rental expense (1)	7
Total	$	275
Earnings:
Income before income tax expense (2)	$	736
Income before income tax expense attributable to noncontrolling interests	(5		)
Income before income tax expense attributable to redeemable noncontrolling interests	(1		)
Equity in income of 50 percent or less owned affiliated companies	(39		)
Dividends received from 50 percent or less owned affiliated companies (3)	25
Fixed charges	275
Interest capitalized	(111		)
Amortization of previously capitalized interest	4
Total	$	884
Ratio of Earnings to Fixed Charges	3.2

⁽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.

⁽³⁾ Represents dividends received from equity-method investments.