Attached files

file filename
EX-32.2 - EXHIBIT 32.2 - PLAINS ALL AMERICAN PIPELINE LPpaaq22018exhibit322.htm
EX-32.1 - EXHIBIT 32.1 - PLAINS ALL AMERICAN PIPELINE LPpaaq22018exhibit321.htm
EX-31.2 - EXHIBIT 31.2 - PLAINS ALL AMERICAN PIPELINE LPpaaq22018exhibit312.htm
EX-31.1 - EXHIBIT 31.1 - PLAINS ALL AMERICAN PIPELINE LPpaaq22018exhibit311.htm
10-Q - 10-Q - PLAINS ALL AMERICAN PIPELINE LPpaaq2201810-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)
 
Six Months Ended
June 30,
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
2015
 
2014
 
2013
EARNINGS (1)
 

 
 

 
 

 
 

 
 

 
 

Pre-tax income from continuing operations before noncontrolling interests and income from equity investees
$
262

 
$
612

 
$
560

 
$
823

 
$
1,449

 
$
1,426

add: Fixed charges
262

 
613

 
588

 
548

 
457

 
424

add: Distributed income of equity investees
206

 
304

 
216

 
214

 
105

 
55

add: Amortization of capitalized interest
5

 
8

 
7

 
6

 
4

 
3

less: Capitalized interest
(13
)
 
(35
)
 
(47
)
 
(57
)
 
(48
)
 
(38
)
Total Earnings
$
722

 
$
1,502

 
$
1,324

 
$
1,534

 
$
1,967

 
$
1,870

 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES (1)
 

 
 

 
 

 
 

 
 

 
 

Interest expensed and capitalized
$
230

 
$
545

 
$
524

 
$
495

 
$
410

 
$
381

Portion of rent expense related to interest (33.33%)
32

 
68

 
64

 
53

 
47

 
43

Total Fixed Charges
$
262

 
$
613

 
$
588

 
$
548

 
$
457

 
$
424

Series A preferred unit distributions (2)(3)
74

 
142

 
122

 

 

 

Series B preferred unit distributions (2)(4)
25

 
11

 

 

 

 

Total Combined Fixed Charges and Preferred Unit Distributions
$
361

 
$
766

 
$
710

 
$
548

 
$
457

 
$
424

 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES (5)
2.76x

 
2.45x

 
2.25x

 
2.80x

 
4.30x

 
4.41x

 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS (2)(5)
2.00x

 
1.96x

 
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 and 2013, no historical ratio of earnings to combined fixed charges and preferred unit distributions is presented for those years.
(3) 
Distributions on our Series A convertible preferred units (the “Series A preferred units”) were paid in additional Series A preferred units for the years ended December 31, 2017 and 2016. We issued 5,413,842 and 4,646,499 additional Series A preferred units in lieu of cash distributions of $142 million and $122 million for the distributions pertaining to the years ended December 31, 2017 and 2016, respectively. Beginning with the distribution pertaining to the quarter ended March 31, 2018, distributions on our Series A preferred units will be paid in cash.
(4) 
Distributions on our Series B perpetual preferred units accrue and are cumulative at a rate of 6.125% per year from October 10, 2017, the date of original issue, and are payable in cash semiannually.         
(5) 
Ratios may not recalculate due to rounding.