Exhibit 12.01
VALERO L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
| Three Months Ended 2005 |
Years Ended December 31, | ||||||||||||||||||||||
| 2004 |
2003 |
2002 |
2001 |
2000 | |||||||||||||||||||
| Earnings: |
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| Income from continuing operations before provision for income taxes and income from equity investees |
$ | 18,886 | $ | 77,074 | $ | 67,177 | $ | 52,350 | $ | 42,694 | $ | 35,968 | |||||||||||
| Add: |
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| Fixed charges |
6,055 | 21,625 | 16,443 | 5,492 | 4,203 | 5,266 | |||||||||||||||||
| Amortization of capitalized interest |
16 | 60 | 55 | 48 | 39 | 34 | |||||||||||||||||
| Distributions from Skelly-Belvieu Pipeline Company |
— | 1,373 | 2,803 | 3,590 | 2,874 | 4,658 | |||||||||||||||||
| Less: Interest capitalized |
(66 | ) | (192 | ) | (123 | ) | (255 | ) | (298 | ) | — | ||||||||||||
| Total earnings |
$ | 24,891 | $ | 99,940 | $ | 86,355 | $ | 61,225 | $ | 49,512 | $ | 45,926 | |||||||||||
| Fixed charges: |
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| Interest expense (1) |
$ | 5,773 | $ | 20,630 | $ | 15,291 | $ | 4,968 | $ | 3,721 | $ | 5,181 | |||||||||||
| Amortization of debt issuance costs |
104 | 407 | 740 | 160 | 90 | — | |||||||||||||||||
| Interest capitalized |
66 | 192 | 123 | 255 | 298 | — | |||||||||||||||||
| Rental expense interest factor (2) |
112 | 396 | 289 | 109 | 94 | 85 | |||||||||||||||||
| Total fixed charges |
$ | 6,055 | $ | 21,625 | $ | 16,443 | $ | 5,492 | $ | 4,203 | $ | 5,266 | |||||||||||
| Ratio of earnings to fixed charges |
4.1x | 4.6x | 5.3x | 11.1x | 11.8x | 8.7x | |||||||||||||||||
| (1) | The “interest expense, net” reported in Valero L.P.’s consolidated statements of income for the three months ended March 31, 2005 and the year ended December 31, 2004 includes investment income of $48,000 and $221,000, respectively and includes other expense of $0 and ($134,000) for the three months ended March 31, 2005 and the year ended December 31, 2004, respectively. |
| (2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |