Energy Transfer Operating (ET+E) 10-Q 2012 Q2 Quarterly report

Exhibit 12.1

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(UNAUDITED)

	Six Months Ended June 30, 2012
	(in millions)
Fixed Charges:
Interest cost and debt expense	$	49
Interest allocable to rental expense(1)		2
Total	$	51
Earnings:
Income before income tax expense(2)	$	268
Income before income tax expense attributable to noncontrolling interests		(9	)
Equity in income of 50 percent or less owned affiliated companies		(5	)
Dividends received from 50 percent or less owned affiliated companies(3)		2
Fixed charges		51
Interest capitalized		(4	)
Amortization of previously capitalized interest		—
Total	$	303
Ratio of Earnings to Fixed Charges		5.9

⁽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, Mid-Valley Pipeline Company and West Texas Gulf Pipe Line Company.

⁽³⁾ Represents dividends received from equity-method investments, which excludes dividends from Inland Corporation, Mid-Valley Pipeline Company and West Texas Gulf Pipe Line Company.