Exhibit 12.1
Copano Energy, L.L.C. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(In Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months | | | | | | | | | | | | | | | | |
| | Ended | | | | | | | | | | | | | | | | |
| | June 30, | | | | | | | | | | | | | | | | |
| | 2009 | | | 2008 | | | 2007 | | | 2006 | | | 2005 | | | 2004 | |
Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Income (loss) | | $ | 11,943 | | | $ | 58,213 | | | $ | 63,175 | | | $ | 65,114 | | | $ | 30,352 | | | $ | (915 | ) |
Income taxes | | | 735 | | | | 1,249 | | | | 1,714 | | | | — | | | | — | | | | — | |
Equity in earnings from unconsolidated affiliates | | | (3,583 | ) | | | (6,889 | ) | | | (2,850 | ) | | | (1,297 | ) | | | (927 | ) | | | (419 | ) |
| | | | | | | | | | | | | | | | | | |
Pre-tax income (loss) from continuing operations | | | 9,095 | | | | 52,573 | | | | 62,039 | | | | 63,817 | | | | 29,425 | | | | (1,334 | ) |
Fixed charges | | | 29,346 | | | | 69,339 | | | | 30,753 | | | | 34,011 | | | | 20,658 | | | | 23,352 | |
Amortization of capitalized interest | | | 317 | | | | 259 | | | | 85 | | | | 38 | | | | 4 | | | | 4 | |
Distributed income from unconsolidated affiliate | | | 14,227 | | | | 25,830 | | | | 4,382 | | | | — | | | | — | | | | — | |
Capitalized interest | | | (2,346 | ) | | | (3,471 | ) | | | (932 | ) | | | (693 | ) | | | — | | | | — | |
Preferred equity distributions | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | |
Earnings for ratio calculation | | $ | 50,639 | | | $ | 144,530 | | | $ | 96,327 | | | $ | 97,173 | | | $ | 50,087 | | | $ | 22,022 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and other financing costs | | $ | 26,449 | | | $ | 64,978 | | | $ | 29,351 | | | $ | 32,904 | | | $ | 20,461 | | | $ | 23,160 | |
Capitalized interest | | | 2,347 | | | | 3,471 | | | | 932 | | | | 693 | | | | — | | | | — | |
Interest portion of operating leases | | | 550 | | | | 890 | | | | 470 | | | | 414 | | | | 197 | | | | 192 | |
Preferred equity distributions | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | |
Total fixed charges | | $ | 29,346 | | | $ | 69,339 | | | $ | 30,753 | | | $ | 34,011 | | | $ | 20,658 | | | $ | 23,352 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 1.7x | | | | 2.1x | | | | 3.1x | | | | 2.9x | | | | 2.4x | | | | — | |
| | | | | | | | | | | | | | | | | | |
For purposes of computing the ratios of earnings to fixed charges, earnings consist of pre-tax income from continuing operations before equity in (earnings) loss from unconsolidated affiliates plus fixed charges, amortization of capitalized interest and distributions from equity investees less capitalized interest and preference equity distributions. Fixed charges consist of interest expensed and capitalized, distributions on preference units and the estimated interest component of rent expense. Earnings were inadequate to cover fixed charges for the years ended December 31, 2004 by $1.3 million.