Exhibit 12.1. Computation of Ratio of Earnings to Fixed Charges
Regency Energy Partners LP
Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratio amounts)
(Unaudited)
Regency Energy Partners LP | Regency LLC Predecessor | ||||||||||||||||||||||
Period from | Period from | ||||||||||||||||||||||
Acquisition Date | Period from | Inception | |||||||||||||||||||||
Year Ended | Year Ended | Year Ended | (December 1, 2004) | January 1, 2004 to | (April 2, 2003) to | ||||||||||||||||||
December 31, 2007 | December 31, 2006 | December 31, 2005 | to December 31, 2004 | November 30, 2004 | December 31, 2003 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Income (loss) from continuing operations | $ | (18,697 | ) | $ | (7,244 | ) | $ | (11,592 | ) | $ | 1,474 | $ | 20,137 | $ | 6,174 | ||||||||
Add: | |||||||||||||||||||||||
Interest expense | 52,016 | 37,182 | 17,880 | 1,335 | 5,097 | 2,392 | |||||||||||||||||
Portion of rent under long-term operating | |||||||||||||||||||||||
leases representative of an interest factor | 477 | 574 | 477 | 43 | 468 | 190 | |||||||||||||||||
Amortization of capitalized interest | 186 | 131 | - | - | - | - | |||||||||||||||||
Distributed income from investees accounted for under | |||||||||||||||||||||||
equity method | - | - | - | - | 280 | - | |||||||||||||||||
Less: | |||||||||||||||||||||||
Equity income | (43 | ) | (532 | ) | (312 | ) | (56 | ) | - | - | |||||||||||||
Total earnings available for fixed charges | $ | 33,939 | $ | 30,111 | $ | 6,453 | $ | 2,796 | $ | 25,982 | $ | 8,756 | |||||||||||
Fixed Charges: | |||||||||||||||||||||||
Interest expense | 52,016 | 37,182 | 17,880 | 1,335 | 5,097 | 2,392 | |||||||||||||||||
Portion of rent under long-term operating | |||||||||||||||||||||||
leases representative of an interest factor | 477 | 574 | 477 | 43 | 468 | 190 | |||||||||||||||||
Capitalized interest | 1,754 | 511 | 2,613 | - | - | - | |||||||||||||||||
Total fixed charges | $ | 54,247 | $ | 38,267 | $ | 20,970 | $ | 1,378 | $ | 5,565 | $ | 2,582 | |||||||||||
Ratio of earnings to fixed charges (x times) (1) | - | - | - | 2.03 | 4.67 | 3.39 | |||||||||||||||||
(1) Earnings were insufficient to cover fixed charges by: | $ | 20,308 | $ | 8,156 | $ | 14,517 | $ | - | $ | - | $ | - |