EXHIBIT 12.1
Statement Regarding Compution of Ratios
| Aquila Gas Pipeline | Energy Transfer | ||||||||||||||||||||||||||
| Year ended December 31, | Nine Months Ended September 30, | Eleven Months Ended August 31, | Year ended August 31, | Year ended August 31, | Pro Forma August 31, | Nine Months ended May 31, | Pro Forma Nine Months ended May 31, | ||||||||||||||||||||
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2006 | ||||||||||||||||||||
HPL System Acquisition and Titan Acquisition | Titan Acquisition | ||||||||||||||||||||||||||
Fixed charges | |||||||||||||||||||||||||||
Interest expensed | 12,098 | 6,858 | 3,931 | 12,456 | 41,190 | 93,017 | 126,605 | 70,609 | 83,119 | ||||||||||||||||||
Capitalized interest | 70 | 86 | 35 | — | 926 | 191 | 191 | 6,135 | 6,135 | ||||||||||||||||||
Loss on extinquishment of debt | — | — | — | — | — | 9,550 | 9,550 | — | 0 | ||||||||||||||||||
Implicit interest in rent expense | 41 | 65 | 41 | 39 | 133 | 946 | 2,159 | 1,296 | 1,573 | ||||||||||||||||||
| 12,209 | 7,009 | 4,007 | 12,495 | 42,249 | 103,704 | 138,505 | 78,040 | 90,827 | |||||||||||||||||||
Estimated interest element of rentals | |||||||||||||||||||||||||||
Rent expense | 622 | 1,059 | 598 | 881 | 4,283 | 8,830 | 20,146 | 12,100 | 14,684 | ||||||||||||||||||
Weighted average interest rate (working cap/acquisition) | 6.96 | % | 6.50 | % | 7.44 | % | 4.61 | % | 3.20 | % | 12.00 | % | 12.00 | % | 12.00 | % | 12.00 | % | |||||||||
| 582 | 994 | 557 | 842 | 4,150 | 7,884 | 17,988 | 10,804 | 13,111 | |||||||||||||||||||
Interest element | 41 | 65 | 41 | 39 | 133 | 946 | 2,159 | 1,296 | 1,573 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||||||
Income from continuing operations before minority interests and income taxes | 18,892 | 41,161 | 4,272 | 45,063 | 97,765 | 209,409 | 591,269 | 513,110 | 528,202 | ||||||||||||||||||
Less: equity in earnings (losses) of affiliates | (14 | ) | 3,128 | 5,425 | 1,426 | 363 | (376 | ) | (392 | ) | (318 | ) | (318 | ) | |||||||||||||
| 18,906 | 38,033 | (1,153 | ) | 43,637 | 97,402 | 209,785 | 591,661 | 513,428 | 528,520 | ||||||||||||||||||
Add: | |||||||||||||||||||||||||||
Fixed charges | 12,209 | 7,009 | 4,007 | 12,495 | 42,249 | 103,704 | 138,505 | 78,040 | 90,827 | ||||||||||||||||||
Amortization of capitalized interest | 76 | 79 | 62 | — | 1 | 15 | 15 | 13 | 13 | ||||||||||||||||||
Distributed income of equity investees | — | 1,500 | 4,000 | 1,000 | 27 | — | — | — | — | ||||||||||||||||||
Less: | |||||||||||||||||||||||||||
Interest capitalized | (70 | ) | (86 | ) | (35 | ) | — | (926 | ) | (191 | ) | (191 | ) | (6,135 | ) | (6,135 | ) | ||||||||||
Income available for fixed charges | 31,121 | 46,535 | 6,881 | 57,132 | 138,753 | 313,313 | 729,990 | 585,346 | 613,225 | ||||||||||||||||||
Ratio of earnings to fixed charges | 2.55 | 6.64 | 1.72 | 4.57 | 3.28 | 3.02 | 5.27 | 7.50 | 6.75 | ||||||||||||||||||