Tallgrass Energy Partners, LP - FORM 10-K - EX-12.1 - EXHIBIT 12.1 - February 15, 2017

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EX-32.2 - EXHIBIT 32.2 - Tallgrass Energy Partners, LPtep2016123110kexhibit322.htm
EX-32.1 - EXHIBIT 32.1 - Tallgrass Energy Partners, LPtep2016123110kexhibit321.htm
EX-31.2 - EXHIBIT 31.2 - Tallgrass Energy Partners, LPtep2016123110kexhibit312.htm
EX-31.1 - EXHIBIT 31.1 - Tallgrass Energy Partners, LPtep2016123110kexhibit311.htm
EX-23.2 - EXHIBIT 23.2 - Tallgrass Energy Partners, LPtep2016123110kexhibit232.htm
EX-23.1 - EXHIBIT 23.1 - Tallgrass Energy Partners, LPtep2016123110kexhibit231.htm
EX-21.1 - EXHIBIT 21.1 - Tallgrass Energy Partners, LPtep2016123110kexhibit211.htm
EX-10.4 - EXHIBIT 10.4 - Tallgrass Energy Partners, LPtep2016123110kexhibit104.htm
10-K - 10-K - Tallgrass Energy Partners, LPtep2016123110k.htm

Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio data)
The table below sets forth the calculation of Ratios of Earnings to Fixed Charges for the periods indicated.
 
 
 
TEP (1)
 
 
TEP Pre-Predecessor
 
Year Ended December 31,
 
Period from November 12, 2012 to December 31, 2012
 
 
Period from January 1, 2012 to November 12, 2012
 
2016
 
2015
 
2014
 
2013
 
 
 
Earnings from continuing operations before fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax income from continuing operations before earnings from unconsolidated affiliates (2)
$
216,114

 
$
184,814

 
$
58,612

 
$
7,624

 
$
(2,618
)
 
 
$
51,775

Fixed charges
51,306

 
25,437

 
11,626

 
13,360

 
3,450

 
 
69

Amortization of capitalized interest
65

 
66

 
35

 
—

 
—

 
 
—

Distributed earnings from unconsolidated affiliates
51,780

 
—

 
717

 
—

 
—

 
 
—

less: Capitalized interest
(471
)
 
(811
)
 
(1,025
)
 
(242
)
 
—

 
 
—

Earnings from continuing operations before fixed charges
$
318,794

 
$
209,506

 
$
69,965

 
$
20,742

 
$
832

 
 
$
51,844

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
37,189

 
14,226

 
7,648

 
11,264

 
3,040

 
 
—

Capitalized interest
471

 
811

 
1,025

 
242

 
—

 
 
—

Estimate of interest within rental expense (33.3%)
10,032

 
8,615

 
1,574

 
109

 
14

 
 
69

Amortization of debt costs
3,614

 
1,785

 
1,379

 
1,745

 
396

 
 
—

Total fixed charges
$
51,306

 
$
25,437

 
$
11,626

 
$
13,360

 
$
3,450

 
 
$
69

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
6.21

 
8.24

 
6.02

 
1.55

 
—
(3) 
 
751.36

(1) 
TEP closed the acquisition of Trailblazer on April 1, 2014 and the acquisition of a controlling 33.3% membership interest in Pony Express effective September 1, 2014. As the acquisitions of Trailblazer and the initial 33.3% of Pony Express were considered transactions between entities under common control, and changes in reporting entity, financial information presented subsequent to November 13, 2012 and prior to the respective acquisition dates has been recast to include Trailblazer and the initial 33.3% of Pony Express. TEP closed the acquisition of an additional 33.3% membership interest in Pony Express effective March 1, 2015, which represents a transaction between entities under common control and an acquisition of noncontrolling interests. As a result, financial information for periods prior to March 1, 2015 have not been recast to reflect the additional 33.3% membership interest.
(2) 
For purposes of determining the ratio of earnings to fixed charges, earnings are defined as pretax income or loss from continuing operations before earnings from unconsolidated affiliates, plus fixed charges, plus distributed earnings from unconsolidated affiliates, less capitalized interest. Fixed charges consist of interest expensed, capitalized interest, amortization of deferred loan costs, and an estimate of the interest within rental expense.
(3) 
As a result of the net loss for the period from November 12, 2012 to December 31, 2012, the ratio of earnings to fixed charges was less than 1:1. TEP would have needed to generate additional earnings of $2.6 million to achieve an earnings to fixed charges ratio of 1:1 for the period from November 12, 2012 to December 31, 2012.

1

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