Exhibit 12.1
NGL ENERGY PARTNERS LP AND SUBSIDIARIES AND NGL SUPPLY, INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
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| NGL Energy Partners LP |
| NGL Supply, Inc. |
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| Six Months |
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| Six Months |
| Six Months |
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| Ended |
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| Ended |
| Ended |
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| September 30, |
| Year Ended March 31, |
| March 31, |
| September 30, |
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| 2015 |
| 2015 |
| 2014 |
| 2013 |
| 2012 |
| 2011 |
| 2010 |
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EARNINGS: |
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Income (loss) before income taxes |
| $ | (64,926 | ) | $ | 26,262 |
| $ | 49,695 |
| $ | 50,065 |
| $ | 8,465 |
| $ | 12,679 |
| $ | (3,977 | ) |
Loss (income) before income taxes attributable to noncontrolling interests |
| (6,766 | ) | (13,223 | ) | (1,103 | ) | (250 | ) | 12 |
| — |
| 45 |
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Fixed charges |
| 84,731 |
| 151,956 |
| 91,622 |
| 66,824 |
| 9,354 |
| 2,761 |
| 597 |
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Total earnings (loss) |
| $ | 13,039 |
| $ | 164,995 |
| $ | 140,214 |
| $ | 116,639 |
| $ | 17,831 |
| $ | 15,440 |
| $ | (3,335 | ) |
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FIXED CHARGES: |
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Interest expense |
| $ | 62,373 |
| $ | 110,123 |
| $ | 58,854 |
| $ | 32,994 |
| $ | 7,620 |
| $ | 2,482 |
| $ | 372 |
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Loss on early extinguishment of debt |
| — |
| — |
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| 5,769 |
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| — |
| — |
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Portion of rental expense estimated to relate to interest (1) |
| 22,358 |
| 41,833 |
| 32,768 |
| 28,061 |
| 1,734 |
| 279 |
| 225 |
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Fixed charges |
| $ | 84,731 |
| $ | 151,956 |
| $ | 91,622 |
| $ | 66,824 |
| $ | 9,354 |
| $ | 2,761 |
| $ | 597 |
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Ratio of earnings to fixed charges |
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| (2) | 1.09 |
| 1.53 |
| 1.75 |
| 1.91 |
| 5.59 |
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| (3) |
(1) Represents one-third of the total operating lease rental expense, which is that portion estimated to represent interest.
(2) The ratio was less than 1:1 for the six months ended September 30, 2015. NGL Energy Partners LP would have needed to generate an additional $71.7 million of earnings to achieve a ratio of 1:1.
(3) The ratio was less than 1:1 for the six months ended September 30, 2010. NGL Supply, Inc. would have needed to generate an additional $3.9 million of earnings to achieve a ratio of 1:1.