PANHANDLE EASTERN PIPE LINE COMPANY, LP - FORM 10-K - EX-12 - EXHIBIT 12 - March 1, 2010

Attached files

file filename
10-K - PEPL 10-K 2009 - PANHANDLE EASTERN PIPE LINE COMPANY, LPpepl10k_123109.htm
EX-24 - EXHIBIT 24 - PANHANDLE EASTERN PIPE LINE COMPANY, LPexhibi24.htm
EX-23.1 - EXHIBIT 23.1 - PANHANDLE EASTERN PIPE LINE COMPANY, LPexhibit23_1.htm
EX-32.2 - EXHIBIT 32.2 - PANHANDLE EASTERN PIPE LINE COMPANY, LPexhibit32_2.htm
EX-32.1 - EXHIBIT 32.1 - PANHANDLE EASTERN PIPE LINE COMPANY, LPexhibit32_1.htm
EX-31.1 - EXHIBIT 31.1 - PANHANDLE EASTERN PIPE LINE COMPANY, LPexhibit31_1.htm
EX-31.2 - EXHIBIT 31.2 - PANHANDLE EASTERN PIPE LINE COMPANY, LPexhibit31_2.htm
 
Exhibit 12
PANHANDLE EASTERN PIPE LINE COMPANY, LP
                          
                               
RATIO OF EARNINGS TO FIXED CHARGES
                              
                               
                               
The following table sets forth the consolidated ratio of earnings to fixed charges on an historical basis for the years ended December 31, 2009, 2008, 2007, 2006 and 2005. For the purpose of calculating such ratios, “earnings” consist of pre-tax income from continuing operations before income or loss from equity investees, adjusted to reflect distributed income from equity investments, and fixed charges, less capitalized interest. “Fixed charges” consist of interest costs, amortization of debt discount, premiums and issuance costs and an estimate of interest implicit in rentals. No adjustment has been made to earnings for the amortization of capital interest for the periods presented as such amount is immaterial. Interest on FIN 48 liabilities is excluded from the computation of fixed charges as it is recorded by the Company in income tax expense versus interest expense.
  
                               
                               
                               
                               
                               
                               
                               
                               
   
Year Ended December 31,
  
   
2009
    
2008
    
2007
    
2006
    
2005
  
   
(In thousands)
  
FIXED CHARGES:
                              
Interest Expense
   $ 82,881     $ 90,514     $ 83,748     $ 63,322     $ 49,578  
Net amortization of debt discount, premium and
                                        
  issuance expense
     1,615       (1,457 )     (1,197 )     (1,333 )     (1,293 )
Capitalized Interest
     25,701       18,910       14,203       4,645       8,838  
Interest portion of rental expense
     4,122       3,050       3,582       3,780       4,284  
                                         
Total Fixed Charges
   $ 114,319     $ 111,017     $ 100,336     $ 70,414     $ 61,407  
                                         
EARNINGS:
                                        
Consolidated pre-tax income (loss) from continuing
                                        
   operations
   $ 242,315     $ 247,206     $ 246,742     $ 225,794     $ 166,189  
Earnings of equity investments
     (224 )     (304 )     (299 )     (172 )     (226 )
Distributed income from equity investments
     -       -       -       174       203  
Capitalized interest
     (25,701 )     (18,910 )     (14,203 )     (4,645 )     (8,838 )
Minority interest
     -       -       -       -       -  
Total fixed charges (from above)
     114,319       111,017       100,336       70,414       61,407  
                                         
Earnings Available for Fixed Charges
   $ 330,709     $ 339,009     $ 332,576     $ 291,565     $ 218,735  
                                         
                                         
Ratio of Earnings to Fixed Charges
     2.9       3.1       3.3       4.1       3.6  



 
 
 

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