EXHIBIT 12.1
TENNESSEE GAS PIPELINE
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
FOR THE YEAR ENDED DECEMBER 31, FOR THE THREE MONTHS
----------------------------------------- ENDED MARCH 31,
1997 1998 1999 2000 2001 2001 2002
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Earnings
Pre-tax income from continuing operations $ 152 $ 151 $ 256 $ 237 $ 226 $ 88 $ 59
Income from equity investees (12) (12) (9) (11) (14) (5) (5)
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Pre-tax income from continuing operations before
income from equity investees 140 139 247 226 212 83 54
Fixed charges 144 172 129 130 122 31 32
Distributed income of equity investees 11 7 6 -- -- -- --
Capitalized interest (1) (1) (2) (6) (11) (2) (2)
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Totals earnings available for fixed charges $ 294 $ 317 $ 380 $ 350 $ 323 $ 112 $ 84
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Fixed charges
Interest and debt costs $ 144 $ 172 $ 129 $ 130 $ 120 $ 31 $ 32
Interest component of rent -- -- -- -- 2 -- --
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Total fixed charges $ 144 $ 172 $ 129 $ 130 $ 122 $ 31 $ 32
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Ratio of earnings to fixed charges 2.04 1.84 2.95 2.69 2.65 3.61 2.63
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For purposes of calculating these ratios: (i) "fixed charges" represent interest
cost (exclusive of interest on rate refunds), amortization of debt costs and the
estimated portion of rental expense representing the interest factor; and (ii)
"earnings" represent the aggregate of pre-tax income from continuing operations
before income from equity investees, fixed charges, and distributed income of
equity investees, less capitalized interest.