Exhibit 12.1
Regency Energy Partners LP
Ratio of Earnings to Fixed Charges
(in thousands, except for ratio amounts)
(Unaudited)
Successor | Predecessor | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Year Ended December 31, 2011 | Period from Acquisition (May 26, 2010) to December 31, 2010 | Period from January 1, 2010 to May 25, 2010 | Year Ended December 31, 2009 | Year Ended December 31, 2008 | Year Ended December 31, 2007 | ||||||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||||
Interest expense, net | $ | 86,058 | $ | 102,474 | $ | 48,251 | $ | 34,541 | $ | 77,665 | $ | 62,940 | $ | 51,851 | ||||||||||||||||
Capitalized interest | 1,006 | 1,199 | 1,425 | 881 | 1,722 | 2,409 | 1,754 | |||||||||||||||||||||||
Interest charges included in rental expense (c) | 1,279 | 1,843 | 724 | 487 | 1,201 | 375 | 280 | |||||||||||||||||||||||
Distribution to the Series A Convertible Redeemable Preferred Units | 5,836 | 7,781 | 3,891 | 1,945 | 3,891 | — | — | |||||||||||||||||||||||
Accretion of the Series A Convertible Redeemable Preferred Units | 1,405 | 201 | 150 | 55 | 104 | — | — | |||||||||||||||||||||||
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Total fixed charges (a) | $ | 95,584 | $ | 113,498 | $ | 54,441 | $ | 37,909 | $ | 84,583 | $ | 65,724 | $ | 53,885 | ||||||||||||||||
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Earnings: | ||||||||||||||||||||||||||||||
Income (Loss) from continuing operations before income taxes | $ | 56,862 | $ | 74,084 | $ | (4,176 | ) | $ | (4,215 | ) | $ | 141,663 | $ | 87,131 | $ | (18,320 | ) | |||||||||||||
Less: | ||||||||||||||||||||||||||||||
Income from unconsolidated affiliates | 87,198 | 119,540 | 53,493 | 15,872 | 7,886 | — | — | |||||||||||||||||||||||
Capitalized interest | 1,006 | 1,199 | 1,425 | 881 | 1,722 | 2,409 | 1,754 | |||||||||||||||||||||||
Noncontrolling interests | 1,427 | 1,177 | 156 | 406 | 91 | 312 | 305 | |||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||
Distributed income from unconsolidated affiliates | 91,893 | 119,236 | 56,903 | 12,446 | 7,886 | — | — | |||||||||||||||||||||||
Fixed charges | 95,584 | 113,498 | 54,441 | 37,909 | 84,583 | 65,724 | 53,885 | |||||||||||||||||||||||
Amortization of capitalized interest | 481 | 595 | 383 | 113 | 411 | 279 | 186 | |||||||||||||||||||||||
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Total earnings available for fixed charges (b) | $ | 155,189 | $ | 185,497 | $ | 52,477 | $ | 29,094 | $ | 224,844 | $ | 150,413 | $ | 33,692 | ||||||||||||||||
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Ratio of earnings to fixed charges (b)/(a)(1) | 1.62 | 1.63 | — | — | 2.66 | 2.29 | — | |||||||||||||||||||||||
(1) Earnings were insufficient to cover fixed charges by: | $ | — | $ | — | $ | 1,964 | $ | 8,815 | $ | — | $ | — | $ | 20,193 |
(c) | Amount approximates reasonable interest expense included within operating lease payments. |