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, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense(1)(2)(3)(4)(5)(6) | $ | 74,966 | $ | 295,478 | $ | (40,717 | ) | $ | (21,434 | ) | $ | (510,896 | ) | $ | (116,728 | ) | ||||||||
Fixed charges | 35,344 | 38,566 | 90,152 | 106,362 | 98,598 | 63,241 | ||||||||||||||||||
Adjustment to net distributed income of equity investee | 1,165 | (577 | ) | 6,146 | 267 | — | — | |||||||||||||||||
Interest capitalized | (6,360 | ) | (5,146 | ) | (757 | ) | (2,783 | ) | (8,872 | ) | (3,259 | ) | ||||||||||||
Amortization of previously capitalized interest | 387 | 333 | 255 | 581 | 309 | 123 | ||||||||||||||||||
Non-controlling interest | (4,108 | ) | (6,200 | ) | (4,738 | ) | (3,176 | ) | 22,781 | 3,940 | ||||||||||||||
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Total | $ | 101,394 | $ | 322,454 | $ | 50,341 | $ | 79,817 | $ | (398,080 | ) | $ | (52,683 | ) | ||||||||||
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Fixed Charges: | ||||||||||||||||||||||||
Interest cost and debt expense | $ | 27,669 | $ | 31,603 | $ | 87,273 | $ | 101,309 | $ | 87,422 | $ | 59,017 | ||||||||||||
Interest capitalized | 6,360 | 5,146 | 757 | 2,783 | 8,872 | 3,259 | ||||||||||||||||||
Interest allocable to rental expense(7) | 1,315 | 1,817 | 2,122 | 2,270 | 2,304 | 965 | ||||||||||||||||||
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Total Fixed Charges | 35,344 | 38,566 | 90,152 | 106,362 | 98,598 | 63,241 | ||||||||||||||||||
Preferred dividends | — | 389 | 780 | 900 | 2,274 | 6,250 | ||||||||||||||||||
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Total Fixed Charges and Preferred Dividends | $ | 35,344 | $ | 38,955 | $ | 90,932 | $ | 107,262 | $ | 100,872 | $ | 69,491 | ||||||||||||
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Ratio of Earnings to Fixed Charges | 2.9 | x | 8.4 | x | — | (8) | — | (9) | — | (10) | — | (11) | ||||||||||||
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Ratio of Earnings to Fixed Charges and Preferred Dividends | N/A | 8.3 | x | — | (12) | — | (13) | — | (14) | — | (15) | |||||||||||||
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(1) | Includes a $31.6 million non-cash gain recognized on derivates for the nine months ended September 30, 2012. |
(2) | Includes a gain on asset sales of $256.3 million and a non-cash loss recognized on derivatives of $4.5 million for the year ended December 31, 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 and preferred dividends by $40.6 million for this period. |
(13) | The Partnership earnings were insufficient to cover its fixed charges and preferred dividends by $27.4 million for this period. |
(14) | The Partnership earnings were insufficient to cover its fixed charges and preferred dividends by $499.0 million for this period. |
(15) | The Partnership earnings were insufficient to cover its fixed charges and preferred dividends by $122.2 million for this period. |