EX-12.01 2 ns3q1110qex1201.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES NS 3Q11 10Q EX12.01


 
Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
 
 
Nine Months
 
Years Ended December 31,
 
Ended
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
 
 
 
 
 
 
 
 
 
 
2011
 
2010
 
2009
 
2008
 
2007
 
2006
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
before provision for income taxes and income from equity investees
$
197,716

 
$
240,211

 
$
225,791

 
$
256,994

 
$
154,913

 
$
149,885

Add:
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
84,282

 
103,390

 
102,781

 
113,959

 
91,594

 
75,829

Amortization of capitalized interest
579

 
642

 
553

 
440

 
255

 
126

Distributions from joint ventures
9,397

 
9,625

 
9,700

 
2,835

 
544

 
5,268

Less: Interest capitalized
(4,103
)
 
(3,701
)
 
(1,650
)
 
(5,108
)
 
(5,995
)
 
(1,758
)
Total earnings
$
287,871

 
$
350,167

 
$
337,175

 
$
369,120

 
$
241,311

 
$
229,350

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense (1)
$
61,945

 
$
77,343

 
$
78,622

 
$
92,971

 
$
77,584

 
$
68,241

Amortization of debt issuance
costs
1,281

 
1,118

 
910

 
815

 
1,030

 
726

Interest capitalized
4,103

 
3,701

 
1,650

 
5,108

 
5,995

 
1,758

Rental expense interest factor (2)
16,953

 
21,228

 
21,599

 
15,065

 
6,985

 
5,104

Total fixed charges
$
84,282

 
$
103,390

 
$
102,781

 
$
113,959

 
$
91,594

 
$
75,829

Ratio of earnings to fixed charges
3.4x

 
3.4x

 
3.3x

 
3.2x

 
2.6x

 
3.0x


 
(1)
The “Interest expense, net” reported in NuStar Energy L.P.'s consolidated statement of income for the nine months ended September 30, 2011 includes investment income of $582,000.
(2)
The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.