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 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges (a) | | $ | 95,584 | | | $ | 113,498 | | | $ | 54,441 | | | | | $ | 37,909 | | | $ | 84,583 | | | $ | 65,724 | | | $ | 53,885 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earnings available for fixed charges (b) | | $ | 155,189 | | | $ | 185,497 | | | $ | 52,477 | | | | | $ | 29,094 | | | $ | 224,844 | | | $ | 150,413 | | | $ | 33,692 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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. |
