Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
The table below sets forth the calculation of Ratios of Earnings to Fixed Charges.
DCP Midstream Partners, LP | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Earnings from continuing operations before fixed charges | ||||||||||||||||||||
Pretax income (loss) from continuing operations before income or loss from equity method investments | $ | (55.0 | ) | $ | 32.7 | $ | 47.4 | $ | 30.2 | $ | 16.3 | |||||||||
Fixed charges | 27.0 | 12.6 | 1.5 | 0.1 | 0.1 | |||||||||||||||
Distributed income of equity method investments | 38.9 | 25.9 | 25.7 | 13.4 | 2.6 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | (0.2 | ) | (0.4 | ) | — | — | — | |||||||||||||
Earnings from continuing operations before fixed charges | $ | 10.7 | $ | 70.8 | $ | 74.6 | $ | 43.7 | $ | 19.0 | ||||||||||
Fixed charges | ||||||||||||||||||||
Interest expense, net of capitalized interest | $ | 26.0 | $ | 11.4 | $ | 0.8 | $ | — | $ | — | ||||||||||
Capitalized interest | 0.2 | 0.4 | — | — | — | |||||||||||||||
Estimate of interest within rental expense | 0.6 | 0.7 | 0.7 | 0.1 | 0.1 | |||||||||||||||
Amortization of deferred loan costs | 0.2 | 0.1 | — | — | — | |||||||||||||||
Total fixed charges | $ | 27.0 | $ | 12.6 | $ | 1.5 | $ | 0.1 | $ | 0.1 | ||||||||||
Ratio of earnings to fixed charges | 0.4 | 5.6 | 49.7 | 437.0 | 190.0 | |||||||||||||||
For purposes of determining the ratio of earnings to fixed charges, earnings are defined as pretax income (loss) from continuing operations before income or loss from equity method investments, plus fixed charges, plus distributed income of equity method investments, less capitalized interest. Fixed charges consist of interest expensed, capitalized interest, amortization of deferred loan costs, and an estimate of the interest within rental expense.