Exhibit 12.1
Holly Energy Partners, L.P.
Computation of Ratio of Earnings
To Fixed Charges
(In thousands)
Six Months Ended June 30, 2011 | Years Ended December 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Net income | $ | 34,182 | $ | 58,869 | $ | 46,234 | $ | 20,696 | $ | 35,152 | $ | 23,989 | ||||||||||||
Add total fixed charges (per below) | 18,895 | 36,598 | 24,638 | 24,751 | 15,125 | 14,815 | ||||||||||||||||||
Total earnings | $ | 53,077 | $ | 95,467 | $ | 70,872 | $ | 45,447 | $ | 50,277 | $ | 38,804 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense | $ | 17,273 | $ | 34,001 | $ | 21,501 | $ | 21,763 | $ | 13,289 | $ | 13,056 | ||||||||||||
Capitalized interest | 530 | 455 | 1,008 | 1,007 | — | — | ||||||||||||||||||
Estimate of interest within rental expense(1) | 1,092 | 2,142 | 2,129 | 1,981 | 1,836 | 1,759 | ||||||||||||||||||
Total fixed charges | $ | 18,895 | $ | 36,598 | $ | 24,638 | $ | 24,751 | $ | 15,125 | $ | 14,815 | ||||||||||||
Ratio of earnings to fixed charges | 2.81 | 2.61 | 2.88 | 1.84 | 3.32 | 2.62 | ||||||||||||||||||
(1) | Represents 30% of the total operating lease rental expense which is that portion deemed to be interest. |