Exhibit 12.1
Holly Energy Partners, L.P.
Computation of Ratio of Earnings
To Fixed Charges
(In thousands)
Computation of Ratio of Earnings
To Fixed Charges
(In thousands)
| Six Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| June 30, | Years Ended December 31, | |||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
| Net income | $ | 18,440 | $ | 27,543 | $ | 26,816 | $ | 32,494 | $ | 581 | $ | 2,670 | ||||||||||||
| Minority interest in consolidated subsidiary | 581 | 680 | 740 | 1,994 | 758 | — | ||||||||||||||||||
| Income from equity investee | — | — | — | — | (894 | ) | (2,737 | ) | ||||||||||||||||
| 19,021 | 28,223 | 27,556 | 34,488 | 445 | (67 | ) | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||
| Total fixed charges (per below) | 7,602 | 14,815 | 11,324 | 2,279 | 1,665 | 1,657 | ||||||||||||||||||
| Distributed income of equity investee | — | — | — | — | — | 2,487 | ||||||||||||||||||
| Total earnings | $ | 26,623 | $ | 43,038 | $ | 38,880 | $ | 36,767 | $ | 2,110 | $ | 4,077 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
| Interest expense | $ | 6,729 | $ | 13,056 | $ | 9,633 | $ | 697 | $ | — | $ | — | ||||||||||||
Estimate of interest within rental expense(1) | 873 | 1,759 | 1,691 | 1,582 | 1,665 | 1,657 | ||||||||||||||||||
| Total fixed charges | $ | 7,602 | $ | 14,815 | $ | 11,324 | $ | 2,279 | $ | 1,665 | $ | 1,657 | ||||||||||||
| Ratio of earnings to fixed charges | 3.50 | 2.91 | 3.43 | 16.13 | 1.27 | 2.46 | ||||||||||||||||||
| (1) | Represents 30% of the total operating lease rental expense which is that portion deemed to be interest. |