Exhibit 12.1
Enable Midstream Partners, LP
Computation of Ratio of Earnings to Fixed Charges
|
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2015 | | 2014 | | 2013 | | 2012 | | 2011 |
| | (In millions) |
| Earnings: | | | | | | | | | |
Income (loss) before income taxes (before earnings from equity method affiliates) (1) | $ | (800 | ) | | $ | 515 |
| | $ | 411 |
| | $ | 488 |
| | $ | 364 |
|
| Add: | | | | | | | | | |
| Fixed charges | 114 |
| | 92 |
| | 84 |
| | 92 |
| | 95 |
|
| Amortization of capitalized interest | 2 |
| | 1 |
| | 1 |
| | 1 |
| | — |
|
| Distributed earnings of equity method affiliates | 29 |
| | 20 |
| | 15 |
| | 31 |
| | 31 |
|
| Noncontrolling interest in pre-tax loss of subsidiaries | 19 |
| | — |
| | — |
| | — |
| | — |
|
| Less: | | | | | | | | | |
| Capitalized interest | (11 | ) | | (8 | ) | | (5 | ) | | (2 | ) | | — |
|
| Noncontrolling interest in pre-tax income of subsidiaries | — |
| | (3 | ) | | (3 | ) | | — |
| — |
| — |
|
| Total earnings | $ | (647 | ) | | $ | 617 |
| | $ | 503 |
| | $ | 610 |
| | $ | 490 |
|
| Fixed charges: | | | | | | | | | |
| Interest expense, net of capitalized interest | $ | 90 |
| | $ | 70 |
| | $ | 67 |
| | $ | 85 |
| | $ | 90 |
|
| Capitalized interest | 11 |
| | 8 |
| | 7 |
| | 2 |
| | — |
|
| Amortization of premium (discount) on long-term debt | 5 |
| | 9 |
| | 8 |
| | — |
| | — |
|
| Amortization of debt expense | (3 | ) | | (3 | ) | | (2 | ) | | — |
| | — |
|
| Implicit interest in rents | 11 |
| | 8 |
| | 4 |
| | 5 |
| | 5 |
|
| Total fixed charges | $ | 114 |
| | $ | 92 |
| | $ | 84 |
| | $ | 92 |
| | $ | 95 |
|
Ratio of earnings to fixed charges (2) | — |
| | 6.73 |
| | 5.99 |
| | 6.61 |
| | 5.14 |
|
_____________________
| |
| (1) | Includes non-cash impairment on goodwill and long-lives assets of $1,134 million for the year ended December 31, 2015. |
| |
| (2) | Earnings were inadequate to cover fixed charges by $761 million for the year ended December 31, 2015. |
For purposes of determining the ratio of earnings to fixed charges, earnings are defined as pretax income or loss from continuing operations before earnings from equity method affiliates, plus noncontrolling interest in pre-tax loss of subsidiaries, plus fixed charges, plus distributed earnings from equity method affiliates, less noncontrolling interest in pre-tax income of subsidiaries, less capitalized interest. Fixed charges consist of interest expensed, capitalized interest, amortization of deferred loan costs and an estimate of the interest within rental expense.
