Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
| Three Months Ended March 31, 2008 |
Year Ended December 31, | |||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||||
| Earnings: |
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| Income from continuing operations before provision for |
$ | 58,230 | $ | 154,913 | $ | 149,885 | $ | 110,069 | $ | 77,074 | $ | 67,177 | ||||||||||||
| Add: |
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| Fixed charges |
22,232 | 91,594 | 75,829 | 46,211 | 21,625 | 16,443 | ||||||||||||||||||
| Amortization of capitalized interest |
95 | 255 | 126 | 80 | 60 | 55 | ||||||||||||||||||
| Distributions from joint ventures |
500 | 544 | 5,268 | 4,657 | 1,373 | 2,803 | ||||||||||||||||||
| Less: Interest capitalized |
(1,819 | ) | (5,995 | ) | (1,758 | ) | (1,008 | ) | (192 | ) | (123 | ) | ||||||||||||
| Total earnings |
$ | 79,238 | $ | 241,311 | $ | 229,350 | $ | 160,009 | $ | 99,940 | $ | 86,355 | ||||||||||||
| Fixed charges: |
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| Interest expense (1) |
$ | 18,321 | $ | 77,584 | $ | 68,241 | $ | 41,616 | $ | 20,630 | $ | 15,291 | ||||||||||||
| Amortization of debt issuance costs |
167 | 1,030 | 726 | 622 | 407 | 740 | ||||||||||||||||||
| Interest capitalized |
1,819 | 5,995 | 1,758 | 1,008 | 192 | 123 | ||||||||||||||||||
| Rental expense interest factor (2) |
1,925 | 6,985 | 5,104 | 2,965 | 396 | 289 | ||||||||||||||||||
| Total fixed charges |
$ | 22,232 | $ | 91,594 | $ | 75,829 | $ | 46,211 | $ | 21,625 | $ | 16,443 | ||||||||||||
| Ratio of earnings to fixed charges |
3.6x | 2.6x | 3.0x | 3.5x | 4.6x | 5.3x | ||||||||||||||||||
| (1) |
The “Interest expense, net” reported in NuStar Energy L.P.’s consolidated statement of income for the three months ended March 31, 2008 includes investment income of $1,623,000. |
| (2) |
The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |