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Exhibit 12
PANHANDLE EASTERN PIPELINE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| | | | | Years Ended December 31, | | | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | For Period of January 12- December 31, 2003 | For Period of January 1- June 11, 2003 | | For Period of March 29- December 31, 1999 | For Period of January 1- March 28, 1999 | |||||||||||||||||||||||
| Three Months Ended March 31, 2004 | Three Months Ended March 31, 2003 | |||||||||||||||||||||||||||
| 2002 | 2001 | 2000 | ||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||
EARNINGS: | |||||||||||||||||||||||||||||
Consolidated pre-tax income from continuing operations before minority interest and equity earnings (losses) | $ | 54.3 | $ | 84.8 | $ | 78.1 | $ | 46.7 | $ | 125.5 | $ | 95.1 | $ | 107.1 | $ | 68.5 | $ | 52.8 | |||||||||||
Equity earnings (losses) | 0.0 | 0.0 | 0.4 | 0.4 | (7.0 | ) | (0.8 | ) | 0.2 | (0.2 | ) | 0.2 | |||||||||||||||||
SFAS 145 adjustment | 0.9 | (3.2 | ) | ||||||||||||||||||||||||||
Fixed charges | 13.6 | 27.9 | 37.0 | 20.6 | 81.2 | 87.3 | 86.7 | 62.9 | 19.7 | ||||||||||||||||||||
Minority interest | 0.0 | 0.0 | 0.0 | 0.0 | (3.5 | ) | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||
Capitalized interest | (1.1 | ) | 1.6 | ) | (1.0 | ) | (0.4 | ) | (3.0 | ) | (3.0 | ) | (0.2 | ) | (0.3 | ) | (0.1 | ) | |||||||||||
Earnings | $ | 66.8 | $ | 111.1 | $ | 114.5 | $ | 67.3 | $ | 194.1 | $ | 175.4 | $ | 193.8 | $ | 130.9 | $ | 72.6 | |||||||||||
FIXED CHARGES: | |||||||||||||||||||||||||||||
Interest | $ | 10.2 | $ | 25.6 | $ | 33.0 | $ | 18.7 | $ | 73.8 | $ | 82.0 | $ | 84.1 | $ | 58.1 | $ | 18.4 | |||||||||||
Net amortization of debt discount and premium and issuance expense | 2.0 | 2.4 | 1.2 | 2.6 | 0.8 | 0.6 | 0.7 | 0.2 | |||||||||||||||||||||
Capitalized interest | 1.1 | 1.6 | 1.0 | 0.4 | 3.0 | 3.0 | 0.2 | 0.3 | 0.1 | ||||||||||||||||||||
Interest portion of rental expense | 0.3 | 0.7 | 0.6 | 0.3 | 1.8 | 1.5 | 1.8 | 3.8 | 1.0 | ||||||||||||||||||||
Fixed charges | $ | 13.6 | $ | 27.9 | $ | 37.0 | $ | 20.6 | $ | 81.2 | $ | 87.3 | $ | 86.7 | $ | 62.9 | $ | 19.7 | |||||||||||
Ratio of earnings to fixed charges | 4.9 | 4.0 | 3.1 | 3.3 | 2.4 | 2.0 | 2.2 | 2.1 | 3.6 |
PANHANDLE EASTERN PIPELINE COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES