Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio Data)
 
 
Years Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings:
 
 
 
 
 
 
 
 
 
Income (loss) from continuing
operations before provision for
income taxes and income from
equity investees
$
157,901

 
$
161,976

 
$
320,658

 
$
220,174

 
$
(132,786
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
190,674

 
154,085

 
150,661

 
153,236

 
149,090

Amortization of capitalized interest
1,871

 
1,722

 
1,573

 
1,385

 
1,216

Distributions from joint ventures
—

 
—

 
2,500

 
7,587

 
7,956

Less:
 
 
 
 
 
 
 
 
 
Interest capitalized
(5,529
)
 
(3,414
)
 
(5,549
)
 
(5,667
)
 
(4,501
)
Total earnings
$
344,917

 
$
314,369

 
$
469,843

 
$
376,715

 
$
20,975

Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense, net
$
173,083

 
$
138,350

 
$
131,868

 
$
132,281

 
$
127,119

Interest capitalized
5,529

 
3,414

 
5,549

 
5,667

 
4,501

Rental expense interest factor (a)
12,062

 
12,321

 
13,244

 
15,288

 
17,470

Total fixed charges
$
190,674

 
$
154,085

 
$
150,661

 
$
153,236

 
$
149,090

 
 
 
 
 
 
 
 
 
 
Preferred unit distributions (b)
$
40,448

 
$
1,925

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges plus preferred unit distributions (b)
$
231,122

 
$
156,010

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
1.8x

 
2.0x

 
3.1x

 
2.5x

 
(c)

Ratio of earnings to fixed charges plus preferred unit distributions (b)
1.5x

 
2.0x

 
 
 
 
 
 

(a)
The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.
 
 
(b)
For the years ended December 31, 2015, 2014 and 2013, we had no preferred units outstanding.
 
 
(c)
For the year ended December 31, 2013, earnings were insufficient to cover fixed charges by $128.1 million. The deficiency included a goodwill impairment loss of $304.5 million related to the Statia terminals reporting unit.