Exterran Energy (HC) 10-K 2005 FY Annual report

Exhibit 12.1

Hanover Compressor Company
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands of dollars, except ratio amounts)

	Year Ended December 31,
	2005 (1)			2004 (2)			2003 (3)			2002 (4)			2001
Earnings:
Income (loss) from continuing operations before taxes		(9,434	)		(29,324	)		(113,859	)		(97,325	)		107,257
Add:
Interest on indebtedness, amortization of capitalized interest and amortization of capitalized debt expense and discount		147,796			158,241			95,341			46,639			34,738
Leasing expense and the estimated interest factor attributable to rents		3,234			3,450			49,818			95,362			71,315
Equity in income of non-consolidated affiliates in excess of distributions of income		(2,763	)		(10,112	)		(4,563	)		(1,966	)		(9,607	)
Earnings as adjusted		138,833			122,255			26,737			42,710			203,703
Fixed charges:
Interest on indebtedness, amortization of capitalized debt expense and discount and capitalized interest		147,344			157,502			95,850			48,763			37,228
Leasing expense and the estimated interest factor attributable to rents		3,234			3,450			49,818			95,362			71,315
Total fixed charges		150,578			160,952			145,668			144,125			108,543
Ratio of earnings to fixed charges		—			—			—			—			1.88

(1)	Due to Hanover’s loss for the year ended December 31, 2005, the ratio was less than 1:1. Hanover would have had to generate additional pre-tax earnings of $11.7 million to achieve coverage of 1:1. During the year, we recorded $9.8 million in pre-tax charges. For a description of these pre-tax charges, see Note 22 in the notes to the consolidated financial statements included in Hanover’s Annual Report on Form 10-K for the year ended December 31, 2005.
(2)	Due to Hanover’s loss for the year ended December 31, 2004, the ratio was less than 1:1. Hanover would have had to generate additional pre-tax earnings of $38.7 million to achieve coverage of 1:1. During the year, we recorded $0.4 million in pre-tax benefit. For a description of this pre-tax benefit, see Note 22 in the notes to the consolidated financial statements included in Hanover’s Annual Report on Form 10-K for the year ended December 31, 2005.
(3)	Due to Hanover’s loss for the year ended December 31, 2003, the ratio was less than 1:1. Hanover would have had to generate additional pre-tax earnings of $118.9 million to achieve coverage of 1:1. During the year, we recorded $250.6 million in pre-tax charges. For a description of these pre-tax charges, see Note 22 in the notes to the consolidated financial statements included in Hanover’s Annual Report on Form 10-K for the year ended December 31, 2005.
(4)	Due to Hanover’s loss for the year ended December 31, 2002, the ratio was less than 1:1. Hanover would have had to generate additional pre-tax earnings of $101.4 million to achieve coverage of 1:1. During the year, we recorded $182.7 million in pre-tax charges. For a description of these pre-tax charges, see Note 22 in the notes to the consolidated financial statements included in Hanover’s Annual Report on Form 10-K for the year ended December 31, 2004.