KINDER MORGAN ENERGY PARTNERS, L.P. AND SUBSIDIARIES EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars In Thousands Except Ratio Amounts) Year Ended December 31, 2005 2004 2003 2002 2001 ------------ ------------ ------------ ------------ -------- Earnings: Pre-tax income from continuing operations before cumulative effect of a change in accounting principle and before adjustment for minority interest and equity earnings (including amortization of excess cost of equity investments) per statements of income.......................................... $ 757,934 $ 783,368 $ 632,933 $ 549,536 $ 394,333 Add: Fixed charges................................................. 293,963 215,642 188,483 184,678 179,708 Services.......................................................... Amortization of capitalized interest.......................... 808 589 447 329 201 Distributed income of equity investees........................ 63,098 65,248 83,000 77,735 68,832 Less: Interest capitalized from continuing operations............... (9,830) (6,378) (5,310) (5,778) (3,134) ----------- ----------- ----------- ----------- ---------- Income as adjusted............................................ $1,105,973 $1,058,469 $ 899,553 $ 806,500 $ 639,940 ---------- ---------- ---------- ---------- ---------- Fixed charges: Interest and debt expense, net per statements of income (includes amortization of debt discount, premium, and debt issuance costs; excludes capitalized interest)................ $ 278,188 $ 202,550 $ 188,087 $ 184,057 $ 179,064 Add: Portion of rents representative of the interest factor........ 15,775 13,092 396 621 644 ---------- ---------- ---------- ---------- ---------- Services.......................................................... Fixed charges................................................. $ 293,963 $ 215,642 $ 188,483 $ 184,678 $ 179,708 ---------- ---------- ---------- ---------- ---------- Ratio of earnings to fixed charges................................ 3.76 4.91 4.77 4.37 3.56 ============ ============ ============ ============ ===========