EXHIBIT 12.1
WESTERN GAS PARTNERS, LP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| Year Ended December 31, | ||||||||||||||||||||
| thousands | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
| Earnings: | ||||||||||||||||||||
| Income (loss) before income taxes | $ | (60,057 | ) | $ | 419,526 | $ | 294,199 | $ | 173,329 | $ | 238,827 | |||||||||
| Add: | ||||||||||||||||||||
| Fixed charges | 122,456 | 87,102 | 64,120 | 48,517 | 31,478 | |||||||||||||||
| Distributions from equity investees | 98,298 | 81,022 | 22,136 | 20,660 | 15,999 | |||||||||||||||
| Amortization of capitalized interest | 2,197 | 1,695 | 821 | 481 | 294 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Equity income, net | 71,251 | 57,836 | 22,948 | 16,042 | 11,261 | |||||||||||||||
| Capitalized interest | 8,318 | 9,832 | 11,945 | 6,196 | 420 | |||||||||||||||
| Net income before taxes attributable to noncontrolling interests | 10,101 | 14,025 | 10,816 | 14,890 | 14,103 | |||||||||||||||
| Earnings | $ | 73,224 | $ | 507,652 | $ | 335,567 | $ | 205,859 | $ | 260,814 | ||||||||||
| Fixed charges: | ||||||||||||||||||||
| Interest expense, including capitalized interest | $ | 122,190 | $ | 86,598 | $ | 63,742 | $ | 48,256 | $ | 31,221 | ||||||||||
| Interest component of rent expense | 266 | 504 | 378 | 261 | 257 | |||||||||||||||
| Fixed charges | $ | 122,456 | $ | 87,102 | $ | 64,120 | $ | 48,517 | $ | 31,478 | ||||||||||
| Ratio of earnings to fixed charges | * | 5.8x | 5.2x | 4.2x | 8.3x | |||||||||||||||
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| * | As a result of the Partnership’s net loss in 2015, earnings did not cover total fixed charges by $49.2 million for 2015. |
These ratios were computed by dividing earnings by fixed charges. For this purpose, earnings include pre-tax income, plus fixed charges to the extent they affect current year earnings, amortization of capitalized interest and distributed income of equity investees, then subtracting equity income, noncontrolling interests in pre-tax income from subsidiaries that did not incur fixed charges, and interest capitalized during the year. Fixed charges include interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness, and estimates of interest within rental expenses.