PLAINS ALL AMERICAN PIPELINE LP - FORM 10-Q - EX-12.1 - EXHIBIT 12.1 - November 8, 2017

Attached files

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EX-10.5 - EXHIBIT 10.5 - PLAINS ALL AMERICAN PIPELINE LPpaa09302017exhibit105.htm
EX-10.6 - EXHIBIT 10.6 - PLAINS ALL AMERICAN PIPELINE LPpaa09302017exhibit106.htm
EX-32.2 - EXHIBIT 32.2 - PLAINS ALL AMERICAN PIPELINE LPpaa09302017exhibit322.htm
EX-31.2 - EXHIBIT 31.2 - PLAINS ALL AMERICAN PIPELINE LPpaa09302017exhibit312.htm
EX-32.1 - EXHIBIT 32.1 - PLAINS ALL AMERICAN PIPELINE LPpaa09302017exhibit321.htm
EX-31.1 - EXHIBIT 31.1 - PLAINS ALL AMERICAN PIPELINE LPpaa09302017exhibit311.htm
10-Q - 10-Q - PLAINS ALL AMERICAN PIPELINE LPpaaq3201710-q.htm


Exhibit 12.1
 
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS
(in millions, except ratio data)

 
Nine Months Ended
September 30,
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
 
2012
EARNINGS (1)
 

 
 

 
 

 
 

 
 

 
 

Pre-tax income from continuing operations before noncontrolling interests and income from equity investees
$
496

 
$
560

 
$
823

 
$
1,449

 
$
1,426

 
$
1,143

add: Fixed charges
465

 
588

 
548

 
457

 
424

 
380

add: Distributed income of equity investees
222

 
216

 
214

 
105

 
55

 
40

add: Amortization of capitalized interest
6

 
7

 
6

 
4

 
3

 
2

less: Capitalized interest
(26
)
 
(47
)
 
(57
)
 
(48
)
 
(38
)
 
(36
)
Total Earnings
$
1,163

 
$
1,324

 
$
1,534

 
$
1,967

 
$
1,870

 
$
1,529

 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES (1)
 

 
 

 
 

 
 

 
 

 
 

Interest expensed and capitalized
$
416

 
$
524

 
$
495

 
$
410

 
$
381

 
$
346

Portion of rent expense related to interest (33.33%)
49

 
64

 
53

 
47

 
43

 
34

Total Fixed Charges
$
465

 
$
588

 
$
548

 
$
457

 
$
424

 
$
380

Preferred unit distributions (2)(3)
105

 
122

 
—

 
—

 
—

 
—

Total Combined Fixed Charges and Preferred Unit Distributions
$
570

 
$
710

 
$
548

 
$
457

 
$
424

 
$
380

 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES (4)
2.50x

 
2.25x

 
2.80x

 
4.30x

 
4.41x

 
4.03x

 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS (2)(3)(4)
2.04x

 
1.86x

 
—

 
—

 
—

 
—

 
(1) 
For purposes of computing the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred unit distributions, “earnings” consists of pre-tax income from continuing operations before income from equity investees plus fixed charges (excluding capitalized interest), distributed income of equity investees and amortization of capitalized interest. “Fixed charges” represents interest incurred (whether expensed or capitalized), amortization of debt expense (including discounts and premiums relating to indebtedness) and the portion of rental expense on leases deemed to be the equivalent of interest.
(2) 
As no preferred units were outstanding for any of the years ended December 31, 2015, 2014, 2013 and 2012, no historical ratio of earnings to combined fixed charges and preferred unit distributions are presented for those years.
(3) 
The distribution requirement of our Series A convertible preferred units (the “Series A Preferred Units”) was paid in additional Series A Preferred Units for the year ended December 31, 2016 and the nine months ended September 30, 2017. We issued 4,019,916 additional Series A Preferred Units in lieu of cash distributions of $105 million for the distributions pertaining to the nine months ended September 30, 2017, and we issued 4,646,499 additional Series A Preferred Units in lieu of cash distributions of $122 million for the distributions pertaining to the year ended December 31, 2016.
(4) 
Ratios may not recalculate due to rounding.         


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