Exhibit 12.1
Equitable Resources, Inc.
Computation of Ratios of Earnings to Fixed Charges
(Dollars in Thousands)
|
| Nine Months Ended |
| Years Ended December 31, | |||||||||||||||
|
| September 30, 2007 |
| 2006 |
| 2005 |
| 2004 (1) |
| 2003 |
| 2002 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net Income before income taxes, discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
and cumulative effect of accounting changes |
| $ | 309,266 |
| $ | 325,731 |
| $ | 411,612 |
| $ | 453,743 |
| $ | 251,785 |
| $ | 220,238 |
|
Minus: equity (earnings) loss of non consolidated investments |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
and minority interest |
| (2,198 | ) | (260 | ) | (762 | ) | (856 | ) | (3,323 | ) | 15,265 |
| ||||||
Plus: fixed charges |
| 40,402 |
| 51,870 |
| 47,099 |
| 44,473 |
| 43,828 |
| 34,234 |
| ||||||
Minus: capitalized interest |
| (3,022 | ) | (633 | ) | (450 | ) | (146 | ) | (559 | ) | (237 | ) | ||||||
Earnings |
| $ | 344,448 |
| $ | 376,708 |
| $ | 457,499 |
| $ | 497,214 |
| $ | 291,731 |
| $ | 269,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Fixed Charges |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense |
| $ | 35,604 |
| $ | 48,494 |
| $ | 44,437 |
| $ | 42,520 |
| $ | 41,530 |
| $ | 32,221 |
|
Plus: capitalized interest and allowance for borrowed funds used during construction |
| 3,022 |
| 633 |
| 450 |
| 146 |
| 559 |
| 237 |
| ||||||
Plus: estimated interest component of rental expense |
| 1,776 |
| 2,743 |
| 2,212 |
| 1,807 |
| 1,739 |
| 1,776 |
| ||||||
Fixed Charges |
| $ | 40,402 |
| $ | 51,870 |
| $ | 47,099 |
| $ | 44,473 |
| $ | 43,828 |
| $ | 34,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Ratio of earnings to fixed charges |
| 8.53 |
| 7.26 |
| 9.71 |
| 11.18 |
| 6.66 |
| 7.87 |
|
(1) | In the second quarter of 2004, Westport Resources Corporation and Kerr-McGee Corporation completed a merger. The Company recognized a gain of $217.2 million on the exchange of the Westport shares for Kerr-McGee shares in the merger. If this gain is removed from our earnings, the earnings to fixed charges ratio for the year ended December 31, 2004 would be 6.30%. |