EX-12.1 2 ex121-wgp123113onform8k.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX 12.1 - WGP 12.31.13 on Form 8K


EXHIBIT 12.1

WESTERN GAS EQUITY PARTNERS, LP

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
Year Ended December 31,
thousands
 
2013
 
2012
 
2011
 
2010
 
2009
Earnings:
 
 
 
 
 
 
 
 
 
 
Income before income taxes
 
$
284,183

 
$
169,441

 
$
239,011

 
$
178,450

 
$
148,520

Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
63,903

 
48,422

 
30,993

 
19,292

 
10,992

Distributions from equity investees
 
22,136

 
20,660

 
15,999

 
10,973

 
11,206

Amortization of capitalized interest
 
814

 
479

 
294

 
256

 
182

Less:
 
 
 
 
 
 
 
 
 
 
Equity income
 
22,948

 
16,042

 
11,261

 
7,628

 
7,923

Capitalized interest
 
11,945

 
6,196

 
420

 
—

 
—

Net income before taxes attributable to noncontrolling interests
 
121,585

 
59,704

 
86,579

 
64,018

 
37,295

Earnings
 
$
214,558

 
$
157,060

 
$
188,037

 
$
137,325

 
$
125,682

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense, including capitalized interest
 
$
63,742

 
$
48,256

 
$
30,765

 
$
18,794

 
$
9,955

Interest component of rent expense
 
161

 
166

 
228

 
498

 
1,037

Fixed charges
 
$
63,903

 
$
48,422

 
$
30,993

 
$
19,292

 
$
10,992

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
3.4x

 
3.2x

 
6.1x

 
7.1x

 
11.4x


These ratios were computed by dividing earnings by fixed charges. For this purpose, earnings include pre-tax income, plus fixed charges to the extent they affect current year earnings, amortization of capitalized interest and distributed income of equity investees, then subtracting equity income, noncontrolling interests in pre-tax income from subsidiaries that did not incur fixed charges, and interest capitalized during the year. Fixed charges include interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness, and estimates of interest within rental expenses.