Tallgrass Energy Partners, LP - FORM 10-K - EX-12.1 - EXHIBIT 12.1 - February 13, 2018

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10-K - 10-K - Tallgrass Energy Partners, LPtep2017123110k.htm
EX-32.2 - EXHIBIT 32.2 - Tallgrass Energy Partners, LPtep2017123110kexhibit322.htm
EX-32.1 - EXHIBIT 32.1 - Tallgrass Energy Partners, LPtep2017123110kexhibit321.htm
EX-31.2 - EXHIBIT 31.2 - Tallgrass Energy Partners, LPtep2017123110kexhibit312.htm
EX-31.1 - EXHIBIT 31.1 - Tallgrass Energy Partners, LPtep2017123110kexhibit311.htm
EX-23.2 - EXHIBIT 23.2 - Tallgrass Energy Partners, LPtep2017123110kexhibit232.htm
EX-23.1 - EXHIBIT 23.1 - Tallgrass Energy Partners, LPtep2017123110kexhibit231.htm
EX-21.1 - EXHIBIT 21.1 - Tallgrass Energy Partners, LPtep2017123110kexhibit211.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)
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings from continuing operations before fixed charges:
 
 
 
 
 
 
 
 
 
Pre-tax income from continuing operations before earnings from unconsolidated affiliates
$
203,379

 
$
220,358

 
$
194,413

 
$
64,169

 
$
12,971

Fixed charges
87,791

 
51,306

 
25,437

 
11,626

 
13,360

Amortization of capitalized interest
80

 
65

 
66

 
35

 
—

Distributed earnings from unconsolidated affiliates
237,192

 
54,449

 
3,096

 
1,280

 
—

less: Capitalized interest
(964
)
 
(471
)
 
(811
)
 
(1,025
)
 
(242
)
Earnings from continuing operations before fixed charges
$
527,478

 
$
325,707

 
$
222,201

 
$
76,085

 
$
26,089

Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
79,167

 
37,189

 
14,226

 
7,648

 
11,264

Capitalized interest
964

 
471

 
811

 
1,025

 
242

Estimate of interest within rental expense (33.3%)
3,148

 
10,032

 
8,615

 
1,574

 
109

Amortization of debt costs
4,512

 
3,614

 
1,785

 
1,379

 
1,745

Total fixed charges
$
87,791

 
$
51,306

 
$
25,437

 
$
11,626

 
$
13,360

Ratio of earnings to fixed charges (2)
6.01

 
6.35

 
8.74

 
6.54

 
1.95

(1) 
TEP closed the acquisition of Trailblazer on April 1, 2014, the acquisition of a controlling 33.3% membership interest in Pony Express effective September 1, 2014, and the acquisitions of Terminals and NatGas effective January 1, 2017. As these acquisitions 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, the initial 33.3% of Pony Express, and Terminals and NatGas. TEP closed the acquisitions of an additional 33.3% and 31.3% membership interests in Pony Express effective March 1, 2015 and January 1, 2016, respectively, which represent transactions between entities under common control and acquisitions of noncontrolling interests. As a result, financial information for periods prior to March 1, 2015 and January 1, 2016 has not been recast to reflect the additional 33.3% and 31.3% membership interests.
(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.


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