Exhibit 12.1
NGL ENERGY PARTNERS LP AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES
AND COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS
(In thousands, except ratio amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended September 30, | | Year Ended March 31, |
| | | 2016 | | 2016 | | 2015 (1) | | 2014 | | 2013 | | 2012 |
| | | | | | | | | | | | | |
| EARNINGS (LOSS): | | | | | | | | | | | | |
| Income (loss) before income taxes | | $ | 117,017 |
| | $ | (187,464 | ) | | $ | 46,571 |
| | $ | 49,695 |
| | $ | 50,065 |
| | $ | 8,465 |
|
| (Income) loss before income taxes attributable to noncontrolling interests | | (5,774 | ) | | (11,832 | ) | | (12,887 | ) | | (1,103 | ) | | (250 | ) | | 12 |
|
| Fixed charges | | 74,233 |
| | 146,401 |
| | 151,956 |
| | 91,622 |
| | 66,824 |
| | 9,354 |
|
| Total earnings (loss) | | $ | 185,476 |
| | $ | (52,895 | ) | | $ | 185,640 |
| | $ | 140,214 |
| | $ | 116,639 |
| | $ | 17,831 |
|
| | | | | | | | | | | | | |
| FIXED CHARGES: | | | | | | | | | | | | |
| Interest expense | | $ | 63,880 |
| | $ | 133,089 |
| | $ | 110,123 |
| | $ | 58,854 |
| | $ | 32,994 |
| | $ | 7,620 |
|
| (Gain) loss on early extinguishment of debt | | (8,614 | ) | | (28,532 | ) | | — |
| | — |
| | 5,769 |
| | — |
|
| Portion of rental expense estimated to relate to interest (2) | | 18,967 |
| | 41,844 |
| | 41,833 |
| | 32,768 |
| | 28,061 |
| | 1,734 |
|
| Fixed charges | | $ | 74,233 |
| | $ | 146,401 |
| | $ | 151,956 |
| | $ | 91,622 |
| | $ | 66,824 |
| | $ | 9,354 |
|
| | | | | | | | | | | | | |
| PREFERRED UNIT DISTRIBUTIONS | | 8,245 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Combined fixed charges and preferred unit distributions | | $ | 82,478 |
| | $ | 146,401 |
| | $ | 151,956 |
| | $ | 91,622 |
| | $ | 66,824 |
| | $ | 9,354 |
|
| | | | | | | | | | | | | |
| Ratio of earnings to fixed charges (3) | | 2.50 |
| | — |
| | 1.22 |
| | 1.53 |
| | 1.75 |
| | 1.91 |
|
| Ratio of earnings to combined fixed charges and preferred unit distributions (3) | | 2.25 |
| | — |
| | 1.22 |
| | 1.53 |
| | 1.75 |
| | 1.91 |
|
| |
| (1) | We have changed our previously issued consolidated balance sheet as of March 31, 2015 and consolidated statement of operations, consolidated statement of comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows for the year ended March 31, 2015 for the correction of an immaterial error (see Note 17 to our consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016). |
| |
| (2) | Represents one-third of the total operating lease rental expense, which is that portion estimated to represent interest. |
| |
| (3) | The ratios were less than 1:1 for the year ended March 31, 2016. NGL Energy Partners LP would have needed to generate an additional $199.3 million of earnings to achieve a ratio of 1:1. |
