Attached files
| file | filename |
|---|---|
| EX-5.1 - EX-5.1 - EQM Midstream Partners, LP | a16-20711_4ex5d1.htm |
| EX-4.2 - EX-4.2 - EQM Midstream Partners, LP | a16-20711_4ex4d2.htm |
| EX-1.1 - EX-1.1 - EQM Midstream Partners, LP | a16-20711_4ex1d1.htm |
| 8-K - 8-K - EQM Midstream Partners, LP | a16-20711_48k.htm |
Exhibit 12.1
EQT MIDSTREAM PARTNERS, LP
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)
|
|
|
Nine |
|
Year Ended December 31, |
| ||||||||||||||
|
|
|
2016 |
|
2015 |
|
2014 |
|
2013 |
|
2012 |
|
2011 |
| ||||||
|
|
|
(Thousands) |
| ||||||||||||||||
|
Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Income before income taxes |
|
$ |
380,395 |
|
$ |
400,153 |
|
$ |
298,205 |
|
$ |
244,364 |
|
$ |
155,884 |
|
$ |
99,834 |
|
|
Minus: equity income of unconsolidated entities |
|
(6,139 |
) |
(2,367 |
) |
— |
|
— |
|
— |
|
— |
| ||||||
|
Plus: Fixed charges |
|
34,420 |
|
51,041 |
|
33,242 |
|
2,530 |
|
5,226 |
|
6,248 |
| ||||||
|
Minus: Capitalized interest |
|
(6,307 |
) |
(4,546 |
) |
(1,886 |
) |
(442 |
) |
(1,858 |
) |
(758 |
) | ||||||
|
Total earnings |
|
$ |
402,369 |
|
$ |
444,281 |
|
$ |
329,561 |
|
$ |
246,452 |
|
$ |
159,252 |
|
$ |
105,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Interest expense, excluding capital lease interest expense |
|
$ |
11,979 |
|
$ |
22,436 |
|
$ |
10,968 |
|
$ |
829 |
|
$ |
2,944 |
|
$ |
5,050 |
|
|
Interest expense, capital lease |
|
15,332 |
|
23,225 |
|
19,888 |
|
843 |
|
— |
|
— |
| ||||||
|
Plus: Capitalized interest |
|
6,307 |
|
4,546 |
|
1,886 |
|
442 |
|
1,858 |
|
758 |
| ||||||
|
Plus: Estimated interest portion of rental expense |
|
802 |
|
834 |
|
500 |
|
416 |
|
424 |
|
440 |
| ||||||
|
Total fixed charges |
|
$ |
34,420 |
|
$ |
51,041 |
|
$ |
33,242 |
|
$ |
2,530 |
|
$ |
5,226 |
|
$ |
6,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Ratio of earnings to fixed charges |
|
11.7 |
x |
8.7 |
x |
9.9 |
x |
97.4 |
x |
30.5 |
x |
16.9 |
x | ||||||
(1) Earnings included in the calculation of this ratio consist of (i) income before income taxes, minus (ii) equity income of unconsolidated entities, plus (iii) fixed charges and minus (iv) capitalized interest (including allowance for borrowed funds used during construction). Fixed charges included in the calculation of this ratio consist of (i) interest expense, plus (ii) capitalized interest (including allowance for borrowed funds used during construction) and (iii) the estimated interest portion of rental expense.
EQT MIDSTREAM PARTNERS, LP
COMPUTATION OF PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
AFTER ADJUSTMENT FOR ISSUANCE OF SENIOR NOTES (2)
|
|
|
Nine |
|
Year |
| ||
|
|
|
2016 |
|
2015 |
| ||
|
|
|
(Thousands) |
| ||||
|
|
|
|
|
|
| ||
|
Earnings as calculated based on historical earnings |
|
$ |
402,369 |
|
$ |
444,281 |
|
|
Fixed charges as calculated based on historical fixed charges |
|
34,420 |
|
51,041 |
| ||
|
Adjustments: |
|
|
|
|
| ||
|
Plus: Interest expense related to senior notes used to repay borrowings under the credit facility |
|
15,200 |
|
20,266 |
| ||
|
Minus: Interest expense related to credit facility previously outstanding during the period |
|
(1,020 |
) |
(4,343 |
) | ||
|
Minus: Interest expense resulting from the elimination of the capital lease |
|
(15,333 |
) |
(23,225 |
) | ||
|
Total fixed charges, as adjusted |
|
$ |
33,267 |
|
$ |
43,739 |
|
|
|
|
|
|
|
| ||
|
Pro forma ratio of earnings to fixed charges |
|
12.1 |
x |
10.2 |
x | ||
(2) The pro forma ratios of earnings to fixed charges reflect the assumed issuance of the Notes offered hereby on the first day of the applicable period and the use of a portion of the proceeds therefrom to repay the outstanding indebtedness under our Credit Facility, as described in ‘‘Use of Proceeds,’’ in addition to the elimination of the capital lease obligation in connection with the October 2016 Acquisition. Therefore, the pro forma ratio reflects the effects of additional interest expense that would have been incurred on the Notes, lower interest expense resulting from the assumed repayment of borrowings under our Credit Facility, if applicable, and lower interest expense resulting from the elimination of the capital lease. As of October 27, 2016, we had $375 million in outstanding borrowings under our Credit Facility.