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)
| Nine Months | ||||||||||||||||||||||||
| Ended | ||||||||||||||||||||||||
| September 30, | Years Ended December 31, | |||||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
| Net income | $ | 18,234 | $ | 39,271 | $ | 27,543 | $ | 26,816 | $ | 32,494 | $ | 581 | ||||||||||||
| Minority interest in consolidated subsidiary | 834 | 1,067 | 680 | 740 | 1,994 | 758 | ||||||||||||||||||
| Income from equity investee | — | — | — | — | — | (894 | ) | |||||||||||||||||
| 19,068 | $ | 40,338 | 28,223 | 27,556 | 34,488 | 445 | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||
| Total fixed charges (per below) | 15,684 | 15,125 | 14,815 | 11,324 | 2,279 | 1,665 | ||||||||||||||||||
| Total earnings | $ | 34,752 | $ | 55,463 | $ | 43,038 | $ | 38,880 | $ | 36,767 | $ | 2,110 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
| Interest expense | $ | 14,202 | $ | 13,289 | $ | 13,056 | $ | 9,633 | $ | 697 | $ | — | ||||||||||||
Estimate of interest within rental expense(1) | 1,482 | 1,836 | 1,759 | 1,691 | 1,582 | 1,665 | ||||||||||||||||||
| Total fixed charges | $ | 15,684 | $ | 15,125 | $ | 14,815 | $ | 11,324 | $ | 2,279 | $ | 1,665 | ||||||||||||
| Ratio of earnings to fixed charges | 2.22 | 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. |