EXHIBIT 12.1
Statement of Computation of Ratio of Earnings to Fixed Charges (UNAUDITED)
Atlas Pipeline Partners, L.P.
(amounts in thousands except ratios)
Nine Months Ended September 30, | Years Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009(1) | 2008(1) | 2007(1) | 2006(1) | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense(2)(3)(4)(5)(6) | $ | 300,732 | $ | (40,717 | ) | $ | (21,434 | ) | $ | (510,896 | ) | $ | (116,728 | ) | $ | (1,551 | ) | |||||||
Fixed charges | 29,012 | 94,511 | 108,840 | 101,045 | 68,213 | 28,581 | ||||||||||||||||||
Adjustment to net distributed income of equity investee | (386 | ) | 6,146 | 267 | — | — | — | |||||||||||||||||
Interest capitalized | (3,021 | ) | (757 | ) | (2,783 | ) | (8,872 | ) | (3,259 | ) | (2,636 | ) | ||||||||||||
Amortization of previously capitalized interest | 241 | 255 | 581 | 309 | 123 | 34 | ||||||||||||||||||
Non-controlling interest | (4,492 | ) | (4,738 | ) | (3,176 | ) | 22,781 | 3,940 | – | |||||||||||||||
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Total | $ | 322,086 | $ | 54,700 | $ | 82,295 | $ | (395,633 | ) | $ | (47,711 | ) | $ | 24,428 | ||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest cost and debt expense | $ | 24,525 | $ | 91,632 | $ | 103,787 | 89,869 | 63,989 | 25,521 | |||||||||||||||
Interest capitalized | 3,021 | 757 | 2,783 | 8,872 | 3,259 | 2,636 | ||||||||||||||||||
Interest allocable to rental expense(7) | 1,466 | 2,122 | 2,270 | 2,304 | 965 | 424 | ||||||||||||||||||
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Total Fixed Charges | 29,012 | 94,511 | 108,840 | 101,045 | 68,213 | 28,581 | ||||||||||||||||||
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Ratio of Earnings to Fixed Charges | 11.10x | — | (8) | — | (9) | — | (10) | — | (11) | — | (12) | |||||||||||||
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(1) | Restated to reflect amounts reclassified to discontinued operations due to the Partnership’s sale of Elk City. |
(2) | Includes a $255.7 million gain on asset sale and a $22.5 million non-cash gain recognized on derivatives for the nine months ended September 30, 2011. |
(3) | Includes a non-cash gain recognized on derivatives of $10.2 million and a non-recurring cash derivative unwind expense of $17.9 million for the year ended December 31, 2010. |
(4) | Includes a gain on asset sales of $111.4 million, a non-cash loss recognized on derivatives of $51.3 million, a $10.3 million non-cash impairment charge to goodwill and other assets and a non-recurring cash derivative unwind expense of $5.0 million for the year ended December 31, 2009. |
(5) | Includes a $676.9 million non-cash impairment charge to goodwill and other assets; a $115.8 million non-cash gain recognized on derivatives; a $19.9 million gain from the Partnership’s repurchase of approximately $60.0 million of its senior unsecured notes for approximately $40.1 million; and a net $197.6 million cash derivative expense related to the early termination of certain derivative contracts for the year ended December 31, 2008. |
(6) | Includes a $169.4 million non-cash loss recognized on derivatives for the year ended December 31, 2007. |
(7) | Represents one-third of the total operating lease rental expense which is that portion deemed to be interest. |
(8) | The Partnership earnings were insufficient to cover its fixed charges by $39.8 million for this period. |
(9) | The Partnership earnings were insufficient to cover its fixed charges by $26.5 million for this period. |
(10) | The Partnership earnings were insufficient to cover its fixed charges by $496.7 million for this period. |
(11) | The Partnership earnings were insufficient to cover its fixed charges by $115.9 million for this period. |
(12) | The Partnership earnings were insufficient to cover its fixed charges by $4.2 million for this period. |