SOUTHERN NATURAL GAS COMPANY, L.L.C. - FORM 10-K - EX-12 - EXHIBIT 12 - RATIO - February 28, 2011

Attached files

file filename
10-K - SOUTHERN NATURAL GAS COMPANY (SNG) 2010 FORM 1--K - SOUTHERN NATURAL GAS COMPANY, L.L.C.sng10k12312010.htm
EX-23 - EXHIBIT 23 - CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ERNST & YOUNG LLP - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit_23.htm
EX-21 - EXHIBIT 21 - SUBSIDIARIES OF SOUTHERN NATURAL GAS COMPANY - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit_21.htm
EX-31.A - EXHIBIT 31.A - CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit_31a.htm
EX-32.A - EXHIBIT 32.A - CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit_32a.htm
EX-31.B - EXHIBIT 31.B - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit_31b.htm
EX-32.B - EXHIBIT 32.B - CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - SOUTHERN NATURAL GAS COMPANY, L.L.C.exhibit_32b.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,
  
   
2010
    
2009
    
2008
    
2007
    
2006
  
                               
Earnings
                              
  Income before income taxes from continuing operations   $ 267     $ 208     $ 235     $ 271     $ 227  
  Income from equity investees     (14 )     (11 )     (13 )     (88 )     (78 )
  Pre-tax income from continuing operations before income from equity investees   $ 253     $ 197     $ 222     $ 183     $ 149  
                                         
  Fixed charges     67       64       76       98       99  
  Distributed income of equity investees     22       13       16       130       80  
  Allowance for funds used during construction     (2 )     (1 )     (3 )     (4 )     (3 )
  Totals earnings available for fixed charges   $ 340     $ 273     $ 311     $ 407     $ 325  
                                         
Fixed charges
                                        
  Interest and debt costs   $ 66     $ 63     $ 75     $ 97     $ 98  
  Interest component of rent     1       1       1       1       1  
                                         
  Total fixed charges   $ 67     $ 64     $ 76     $ 98     $ 99  
                                         
Ratio of earnings to fixed charges
     5.1       4.3       4.1       4.2       3.3  
 
                                           
                                           
                                           
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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