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) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2008 | September 30, 2007 | September 30, 2008 | September 30, 2007 | |||||||||||||
| Earnings: | ||||||||||||||||
| Pre-tax income (loss) from continuing operations | $ | 48,840 | $ | (9,992 | ) | $ | 69,369 | $ | (18,326 | ) | ||||||
| Add: | ||||||||||||||||
| Interest expense | 16,072 | 10,894 | 48,261 | 41,740 | ||||||||||||
| Portion of rent under long-term operating | ||||||||||||||||
| leases representative of an interest factor | 172 | 123 | 504 | 385 | ||||||||||||
| Amortization of capitalized interest | 73 | 45 | 200 | 125 | ||||||||||||
| Less: | ||||||||||||||||
| Equity income | - | - | - | (43 | ) | |||||||||||
| Total earnings available for fixed charges | $ | 65,157 | $ | 1,070 | $ | 118,334 | $ | 23,881 | ||||||||
| Fixed Charges: | ||||||||||||||||
| Interest expense | $ | 16,072 | $ | 10,894 | $ | 48,261 | $ | 41,740 | ||||||||
| Portion of rent under long-term operating | ||||||||||||||||
| leases representative of an interest factor | 172 | 123 | 504 | 385 | ||||||||||||
| Capitalized interest | 473 | 1,101 | 1,407 | 1,557 | ||||||||||||
| Total fixed charges | $ | 16,717 | $ | 12,118 | $ | 50,172 | $ | 43,682 | ||||||||
| Ratio of earnings to fixed charges (x times) (1) | 3.90 | - | 2.36 | - | ||||||||||||
| (1) Earnings were insufficient to cover fixed charges by: | $ | - | $ | 11,048 | $ | - | $ | 19,801 | ||||||||