Exhibit 12.01
VALERO L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio)
| Years Ended December 31, | |||||||||||||||||||
| 2004 |
2003 |
2002 |
2001 |
2000 | |||||||||||||||
| (in thousands) | |||||||||||||||||||
| Earnings: |
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| Income from continuing operations before provision for income taxes and income from equity investees |
$ | 77,074 | $ | 67,177 | $ | 52,350 | $ | 42,694 | $ | 35,968 | |||||||||
| Add: |
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| Fixed charges |
21,625 | 16,443 | 5,492 | 4,203 | 5,266 | ||||||||||||||
| Amortization of capitalized interest |
60 | 55 | 48 | 39 | 34 | ||||||||||||||
| Distributions from Skelly-Belvieu Pipeline Company |
1,373 | 2,803 | 3,590 | 2,874 | 4,658 | ||||||||||||||
| Less: Interest capitalized |
(192 | ) | (123 | ) | (255 | ) | (298 | ) | — | ||||||||||
| Total earnings |
$ | 99,940 | $ | 86,355 | $ | 61,225 | $ | 49,512 | $ | 45,926 | |||||||||
| Fixed charges: |
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| Interest expense (1) |
$ | 20,630 | $ | 15,291 | $ | 4,968 | $ | 3,721 | $ | 5,181 | |||||||||
| Amortization of debt issuance costs |
407 | 740 | 160 | 90 | — | ||||||||||||||
| Interest capitalized |
192 | 123 | 255 | 298 | — | ||||||||||||||
| Rental expense interest factor (2) |
396 | 289 | 109 | 94 | 85 | ||||||||||||||
| Total fixed charges |
$ | 21,625 | $ | 16,443 | $ | 5,492 | $ | 4,203 | $ | 5,266 | |||||||||
| Ratio of earnings to fixed charges |
4.6x | 5.3x | 11.1x | 11.8x | 8.7x | ||||||||||||||
| (1) | The interest and other expense, net reported in Valero L.P.’s consolidated statements of income for the years ended December 31, 2004 and 2003 includes interest income of $221,000 and $171,000 and other expense of ($134,000) and $0, respectively. |
| (2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |