SOUTHERN NATURAL GAS COMPANY, L.L.C. - FORM 10-K - EX-12 - EXHIBIT 12 - RATIO OF EARNINGS TO FIXED CHARGES - February 26, 2010

Attached files

file filename
10-K - SOUTHERN NATURAL GAS COMPANY (SNG) 2009 FORM 10-K - SOUTHERN NATURAL GAS COMPANY, L.L.C.sng200910k.htm
EX-21 - EXHIBIT 21 - SUBSIDIARIES OF SOUTHERN NATURAL GAS COMPANY - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit21.htm
EX-4.C - EXHIBIT 4.C - INDENTURE (03-05-2003) - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit4_c.htm
EX-32.B - EXHIBIT 32.B - 906 CERTIFICATION OF CHIEF FINANCIAL OFFICER - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit32_b.htm
EX-32.A - EXHIBIT 32.A - 906 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit32_a.htm
EX-31.B - EXHIBIT 31.B - 302 CERTIFICATION OF CHIEF FINANCIAL OFFICER - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit31_b.htm
EX-23.A - EXHIBIT 23.A - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (E&Y) (SNG) - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit23_a.htm
EX-23.B - EXHIBIT 23.B - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PWC) (SNG) - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit23_b.htm
EX-31.A - EXHIBIT 31.A - 302 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit31_a.htm
 
Exhibit 12
 
 

 
SOUTHERN NATURAL GAS COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 (IN MILLIONS, EXCEPT FOR RATIO)
 
 
                    
 
                              
   
FOR THE YEARS ENDED DECEMBER 31,
  
   
2009
    
2008
    
2007
    
2006
    
2005
  
                               
Earnings
                              
  Income before income taxes from continuing operations   $ 208     $ 235     $ 271     $ 227     $ 217  
  Income from equity investees     (11 )     (13 )     (88 )     (78 )     (80 )
Pre-tax income from continuing operations
before income from equity investees
   $ 197     $ 222     $ 183     $ 149     $ 137  
                                         
  Fixed charges     64       76       98       99       98  
  Distributed income of equity investees     13       16       130       80       125  
  Allowance for funds used during construction     (1 )     (3 )     (4 )     (3 )     (1 )
   Totals earnings available for fixed charges   $ 273     $ 311     $ 407     $ 325     $ 359  
                                         
Fixed charges
                                        
  Interest and debt costs   $ 63     $ 75     $ 97     $ 98     $ 97  
  Interest component of rent     1       1       1       1       1  
                                         
   Total fixed charges   $ 64     $ 76     $ 98     $ 99     $ 98  
                                         
Ratio of earnings to fixed charges
     4.3       4.1       4.2       3.3       3.7  
 
                                         
For purposes of computing these ratios:
                                  
                                           
For purposes of computing these ratios, earnings means net income before:
          
 
- income from equity investees, adjusted to reflect actual distribution from equity investments; and
  
 
- fixed charges;
                                
less
                                          
 
- allowance for funds used during construction.
                  
                                           
Fixed charges means the sum of the following:
                        
 
- interest costs;
                          
 
- amortization of debt costs; and
                          
 
- that portion of rental expense which we believe represents an interest factor.
      
 
 
 


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