EXHIBIT 12.1
WESTERN GAS PARTNERS, LP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS
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| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, 2016 | | Year Ended December 31, |
| thousands except ratios | | | 2015 | | 2014 | | 2013 | | 2012 | | 2011 |
| Earnings: | | | | | | | | | | | | | |
| Income before income taxes | | $ | 464,265 | | | $ | 59,739 |
| | $ | 495,729 |
| | $ | 292,559 |
| | $ | 203,379 |
| | $ | 257,508 |
|
| Add: | | | | | | | | | | | | | |
| Fixed charges | | 81,540 | | | 123,680 |
| | 87,892 |
| | 64,806 |
| | 48,871 |
| | 31,689 |
|
| Distributions from equity investees | | 76,263 | | | 98,298 |
| | 81,022 |
| | 22,136 |
| | 20,660 |
| | 15,999 |
|
| Amortization of capitalized interest | | 2,763 | | | 2,375 |
| | 2,095 |
| | 934 |
| | 485 |
| | 294 |
|
| Less: | | | | | | | | | | | | | |
| Equity income | | 56,801 | | | 71,251 |
| | 57,836 |
| | 22,948 |
| | 16,042 |
| | 11,261 |
|
| Capitalized interest | | 4,674 | | | 8,318 |
| | 9,832 |
| | 11,945 |
| | 6,196 |
| | 420 |
|
| Net income before taxes attributable to noncontrolling interests | | 8,507 | | | 10,101 |
| | 14,025 |
| | 10,816 |
| | 14,890 |
| | 14,103 |
|
| Earnings | | $ | 554,849 | | | $ | 194,422 |
| | $ | 585,045 |
| | $ | 334,726 |
| | $ | 236,267 |
| | $ | 279,706 |
|
| | | | | | | | | | | | | | |
| Fixed charges: | | | | | | | | | | | | | |
| Interest expense, including capitalized interest | | 80,361 | | | $ | 122,190 |
| | $ | 86,598 |
| | $ | 63,742 |
| | $ | 48,256 |
| | $ | 31,221 |
|
| Interest component of rent expense | | 1,179 | | | 1,490 |
| | 1,294 |
| | 1,064 |
| | 615 |
| | 468 |
|
| Fixed charges | | $ | 81,540 | | | $ | 123,680 |
| | $ | 87,892 |
| | $ | 64,806 |
| | $ | 48,871 |
| | $ | 31,689 |
|
| | | | | | | | | | | | | | |
Preferred unit distribution (1) | | $ | 30,877 | | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
|
| | | | | | | | | | | | | | |
| Combined fixed charges and preferred unit distribution | | $ | 112,417 | | | $ | 123,680 |
| | $ | 87,892 |
| | $ | 64,806 |
| | $ | 48,871 |
| | $ | 31,689 |
|
| | | | | | | | | | | | | | |
Ratio of earnings to fixed charges (2) | | 6.8x | | 1.6x | | 6.7x | | 5.2x | | 4.8x | | 8.8x |
| | | | | | | | | | | | | | |
Ratio of earnings to combined fixed charges and preferred unit distribution (2) (3) | | 4.9x | | 1.6x | | 6.7x | | 5.2x | | 4.8x | | 8.8x |
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(1) | Represents the distributions associated with the Series A Preferred units issued in March 2016 and April 2016. |
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(2) | These ratios were computed by dividing earnings by fixed charges and by combined fixed charges and preferred unit distributions, respectively. 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, less 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. |
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(3) | No preferred units were outstanding during the years ended December 31, 2015, 2014, 2013, 2012 and 2011. |
