Duncan Energy Partners 10-K 2007 FY Annual report

EXHIBIT 12.1

DUNCAN ENERGY PARTNERS L.P.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)

				Duncan Energy
	Duncan Energy			Partners
	Partners			Predecessor
	For the Eleven			For the One
	Months Ended			Month Ended
	December 31,			January 31,
	2007			2007
Consolidated income	$	19,232		$	5,035
Add:   Parent interest in income of subsidiaries		19,973			—
Provision for income taxes		307			—
Less:   Equity in (income) loss of unconsolidated affiliate		(157	)		(25	)
Consolidated pre-tax income before parent interest in income of subsidiaries and equity earnings from unconsolidated affiliate		39,355			5,010
Add:   Fixed charges		12,328			21
Amortization of capitalized interest		590			—
Subtotal		52,273			5,031
Less:   Interest capitalized		(2,600	)		—
Parent interest in income of subsidiaries		(19,973	)		—
Total earnings	$	29,700		$	5,031
Fixed charges:
Interest expense	$	9,279		$	—
Capitalized interest		2,600			—
Interest portion of rental expense		449			21
Total	$	12,328		$	21
Ratio of earnings to fixed charges		2.41x			239.57x

	Duncan Energy Partners Predecessor
	For the Years Ended December 31,
	2006			2005			2004			2003
Consolidated income	$	55,337		$	39,087		$	58,124		$	52,454
Add:   Provision for income taxes		21			—			—			—
Less:   Equity in (income) loss of unconsolidated affiliate		(958	)		(331	)		(231	)		(131	)
Consolidated pre-tax income before equity earnings from unconsolidated affiliate		54,400			38,756			57,893			52,323
Add:   Fixed charges		420			405			378			390
Total earnings	$	54,820		$	39,161		$	58,271		$	52,713
Fixed charges:
Interest portion of rental expense	$	420		$	405		$	378		$	390
Total	$	420		$	405		$	378		$	390
Ratio of earnings to fixed charges		130.52x			96.69x			154.16x			135.16x

     These computations take into account our consolidated operations and the distributed income from our equity method investee. For purposes of these calculations, “earnings” is the amount resulting from adding and subtracting the following items:

     Add the following, as applicable:

• consolidated pre-tax income before parent interest in income of subsidiaries and income or loss from our equity investee;

• fixed charges;

• amortization of capitalized interest;

• distributed income of our equity investee; and

• our share of pre-tax losses of our equity investee for which charges arising from guarantees are included in fixed charges.

     From the subtotal of the added items, subtract the following, as applicable:

• interest capitalized;

• preference security dividend requirements of consolidated subsidiaries; and

• parent interest in income of subsidiaries in pre-tax income of subsidiaries that have not incurred fixed charges.

     The term “fixed charges” means the sum of the following: interest expensed and capitalized; amortized premiums, discounts and capitalized expenses related to indebtedness; an estimate of interest within rental expenses; and preference dividend requirements of consolidated subsidiaries.

     Duncan Energy Partners Predecessor’s ratio is significantly higher because the predecessor companies did not have any interest expense, capitalized interest, or parent interest in income of subsidiaries expense.