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)
Three Months | ||||||||||||||||||||||||
Ended | Years Ended December 31, | |||||||||||||||||||||||
March 31, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Net income | $ | 7,798 | $ | 39,271 | $ | 27,543 | $ | 26,816 | $ | 32,494 | $ | 581 | ||||||||||||
Minority interest in consolidated subsidiary | 406 | 1,067 | 680 | 740 | 1,994 | 758 | ||||||||||||||||||
Income from equity investee | — | — | — | — | — | (894 | ) | |||||||||||||||||
8,204 | $ | 40,338 | 28,223 | 27,556 | 34,488 | 445 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||
Total fixed charges (per below) | 4,301 | 15,125 | 14,815 | 11,324 | 2,279 | 1,665 | ||||||||||||||||||
Distributed income of equity investee | — | — | — | — | — | — | ||||||||||||||||||
Total earnings | $ | 12,506 | $ | 55,463 | $ | 43,038 | $ | 38,880 | $ | 36,767 | $ | 2,110 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense | $ | 3,807 | $ | 13,289 | $ | 13,056 | $ | 9,633 | $ | 697 | $ | — | ||||||||||||
Estimate of interest within rental expense(1) | 494 | 1,836 | 1,759 | 1,691 | 1,582 | 1,665 | ||||||||||||||||||
Total fixed charges | $ | 4,301 | $ | 15,125 | $ | 14,815 | $ | 11,324 | $ | 2,279 | $ | 1,665 | ||||||||||||
Ratio of earnings to fixed charges | 2.91 | 3.67 | 2.91 | 3.43 | 16.13 | 1.27 | ||||||||||||||||||
(1) | Represents 30% of the total operating lease rental expense which is that portion deemed to be interest. |
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