Exhibit 12.1
SemGroup Corporation
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Successor | | | Predecessor | |
| | Nine Months Ended September 30, 2013 | | | Nine Months Ended September 30, 2012 | | | Year Ended December 31, 2012 | | | Year Ended December 31, 2011 | | | Year Ended December 31, 2010 | | | One Month Ended December 31, 2009 | | | Eleven Months Ended November 30, 2009 | | | Year Ended December 31, 2008 | |
Pretax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | | | (21,846 | ) | | | (12,541 | ) | | | (9,156 | ) | | | (14,598 | ) | | | (142,678 | ) | | | (45,341 | ) | | | 3,542,002 | | | | (1,761,609 | ) |
Add: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Charges | | | 19,413 | | | | 10,195 | | | | 12,514 | | | | 64,249 | | | | 90,078 | | | | 7,551 | | | | 17,171 | | | | 128,520 | |
Amortizaton of capitalized interest | | | 1,373 | | | | 1,316 | | | | 1762 | | | | 1,741 | | | | 1,691 | | | | 140 | | | | 1,528 | | | | 1,522 | |
Distributed earnings of equity investees | | | 52,780 | | | | 33,472 | | | | 53,730 | | | | 27,459 | | | | 5,768 | | | | 0 | | | | 0 | | | | 0 | |
Subtract: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitalized interest | | | 1,233 | | | | 433 | | | | 809 | | | | 901 | | | | 428 | | | | 13 | | | | 2,648 | | | | 10,684 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pretax income as adjusted | | | 50,487 | | | | 32,009 | | | | 58,041 | | | | 77,950 | | | | (45,569 | ) | | | (37,663 | ) | | | 3,558,053 | | | | (1,642,251 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 15,971 | | | | 7,763 | | | | 8,902 | | | | 60,208 | | | | 86,133 | | | | 7,169 | | | | 12,041 | | | | 110,789 | |
Interest capitalized | | | 1,233 | | | | 433 | | | | 809 | | | | 901 | | | | 428 | | | | 13 | | | | 2,648 | | | | 10,684 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 17,204 | | | | 8,196 | | | | 9,711 | | | | 61,109 | | | | 86,561 | | | | 7,182 | | | | 14,689 | | | | 121,473 | |
Portion of rents representative of an appropriate interest factor | | | 2,209 | | | | 1,999 | | | | 2,803 | | | | 3,140 | | | | 3,517 | | | | 369 | | | | 2,482 | | | | 7,047 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges | | | 19,413 | | | | 10,195 | | | | 12,514 | | | | 64,249 | | | | 90,078 | | | | 7,551 | | | | 17,171 | | | | 128,520 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 2.6 | | | | 3.1 | | | | 4.6 | | | | 1.2 | | | | See Note 1 | | | | See Note 2 | | | | 207.2 | | | | See Note 3 | |
Note 1: Earnings for the year ended December 31, 2010 were insufficient to cover fixed charges by $136 million.
Note 2: Earnings for the month ended December 31, 2009 were insufficient to cover fixed charges by $45 million.
Note 3: Earnings for the year ended December 31, 2008 were insufficient to cover fixed charges by $1,771 million.