EXHIBIT 12.2
ENTERPRISE PRODUCTS OPERATING L.P.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
FOR THE YEAR ENDED DECEMBER 31,
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2002 2001 2000 1999 1998
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Consolidated income $ 96,952 $244,718 $223,068 $121,730 $ 10,057
Add: Minority interest 2,137 144 113 110 122
Provision for taxes 1,634
Less: Equity in income of unconsolidated
affiliates (35,253) (25,358) (24,119) (13,477) (15,671)
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Consolidated pre-tax income before
minority interest and equity in income
of unconsolidated affiliates 65,470 219,504 199,062 108,363 (5,492)
Add: Fixed charges 111,141 63,172 42,706 23,325 21,404
Amortization of capitalized interest 363 217 167 112 93
Distributed income of equity investees 57,662 45,054 37,267 6,008 9,117
Less: Interest capitalized (1,083) (2,946) (3,277) (153) (180)
Minority interest (2,137) (144) (113) (110) (122)
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Total Earnings $231,416 $324,857 $275,812 $137,545 $ 24,820
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Fixed charges:
Interest expense $101,580 $ 52,456 $ 33,329 $ 16,439 $ 15,057
Capitalized interest 1,083 2,946 3,277 153 180
Interest portion of
rental expense 8,478 7,770 6,100 6,733 6,167
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Total $111,141 $ 63,172 $ 42,706 $ 23,325 $ 21,404
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RATIO OF EARNINGS TO FIXED CHARGES 2.08x 5.14x 6.46x 5.90x 1.16x
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These computations take into account our consolidated operations and the
distributed income from our equity method investees. For purposes of these
calculations, "earnings" is the amount resulting from adding and subtracting
the following items.
Add the following, as applicable: consolidated pre-tax income before minority
interest and income or loss from equity investees; fixed charges; amortization
of capitalized interest; distributed income of equity investees; and our share
of pre-tax losses of equity investees for which charges arising from guarantees
are included in fixed charges.
From the total of the added items, subtract the following, as applicable:
interest capitalized; preference security dividend requirements of consolidated
subsidiaries; and minority interest in pre-tax income of subsidiaries that have
not incurred fixed charges.
The term "fixed charges" means the sum of the following: interest expensed and
capitalized; amortized premiums, discounts and capitalized expenses related to
indebtedness; an estimate of interest within rental expenses (equal to
one-third of rental expense); and preference security dividend requirements of
consolidated subsidiaries.