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EXHIBIT 12.1
DUKE ENERGY FIELD SERVICES, LLC
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
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<CAPTION>
PREDECESSOR COMPANY HISTORICAL(1)(2)
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THREE
MONTHS
YEARS ENDED DECEMBER 31, ENDED
-------------------------------------------------- MARCH 31,
1995 1996 1997 1998 1999 2000
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<S> <C> <C> <C> <C> <C> <C>
Earnings:
Net income.................... $33,615 $ 84,609 $ 51,238 $ 2,028 $ 43,329 $361,900
Add:
Interest and Debt
expense.................. 20,115 12,747 51,113 52,403 52,915 14,477
Income taxes............... 37,299 35,665 33,380 3,289 31,029 (313,991)
Portion of rents
representative of the
interest factor.......... 511 511 810 823 1,176 340
------- -------- -------- ------- -------- --------
Income as adjusted............ 91,540 133,532 136,541 58,543 128,449 62,726
------- -------- -------- ------- -------- --------
Fixed charges:
Interest and Debt expense per
Statement of Income........ 20,115 12,747 51,113 52,403 52,915 14,477
Capitalized Interest.......... 1,694 1,405 2,254 1,565 930 --
Portion of rents
representative of the
interest factor............ 511 511 810 823 1,176 340
------- -------- -------- ------- -------- --------
TOTAL FIXED CHARGES... $22,320 $ 14,663 $ 54,177 $54,791 $ 55,021 $ 14,817
------- -------- -------- ------- -------- --------
RATIO OF EARNINGS TO FIXED
CHARGES....................... 4.10 9.11 2.52 1.07 2.33 4.23
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(1) From a financial reporting perspective, we are the successor to Duke
Energy's North American midstream natural gas business. The subsidiaries of
Duke Energy that conducted this business were contributed to Duke Energy
Field Services, LLC in December 1999 in contemplation of the Combination.
Duke Energy Field Services, LLC and these former subsidiaries of Duke Energy
collectively are referred to in this prospectus as the "Predecessor
Company."
(2) Interest expense on a historical basis was primarily from intercompany debt.
In addition, the historical advance accounts from the parent companies were
non-interest bearing. As a result, the historical capital structure is not
indicative of the current capital structure.
For purposes of computing the ratios of earnings to fixed charges: (1)
earnings consist of income before income taxes plus fixed charges, and (2) fixed
charges consist of interest expense (including capitalized interest) and the
estimated interest component of rent expense.
