KINDER MORGAN ENERGY PARTNERS, L.P. AND SUBSIDIARIES

EXHIBIT 12 – STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars In millions except ratio amounts)

 

 

|                                                                                                                                                                                                                                                          |   | Year Ended December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                          |   | 2007                    |   | 2006 |   | 2005 |   | 2004 |   | 2003 |   |
| Earnings:                                                                                                                                                                                                                                                     |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pre-tax income from continuing operations before cumulative effect of a change in accounting principle and before adjustment for minority interest and equity earnings (including amortization of excess cost of equity investments) per statements of income |   | $                       | 430.5  |   | $ | 965.8 |   | $ | 760.1 |   | $ | 769.6 |   | $ | 616.1 |   |
| Add:                                                                                                                                                                                                                                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed charges                                                                                                                                                                                                                                                 |   |                    | 444.8  |   |   | 383.7 |   |   | 293.8 |   |   | 215.5 |   |   | 188.5 |   |
| Amortization of capitalized interest                                                                                                                                                                                                                          |   |                    | 2.0    |   |   | 1.3 |   |   | 0.8 |   |   | 0.6 |   |   | 0.4 |   |
| Distributed income of equity investees                                                                                                                                                                                                                        |   |                    | 101.6  |   |   | 66.3 |   |   | 61.1 |   |   | 63.9 |   |   | 81.7 |   |
| Less:                                                                                                                                                                                                                                                         |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest capitalized from continuing operations                                                                                                                                                                                                               |   |                    | (31.4  | ) |   | (20.3 | ) |   | (9.8 | ) |   | (6.3 | ) |   | (5.3 | ) |
| Minority interest in pre-tax income of subsidiaries with no fixed charges                                                                                                                                                                                     |   |                    | (0.5   | ) |   | (0.5 | ) |   | (0.4 | ) |   | (0.1 | ) |   | — |   |
| Income as adjusted                                                                                                                                                                                                                                            |   | $                       | 947.0  |   | $ | 1,396.3 |   | $ | 1,105.6 |   | $ | 1,043.2 |   | $ | 881.4 |   |
|                                                                                                                                                                                                                                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed charges:                                                                                                                                                                                                                                                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and debt expense, net per statements of income (includes amortization of debt discount, premium, and debt issuance costs; excludes capitalized interest)                                                                                             |   | $                       | 428.5  |   | $ | 365.8 |   | $ | 278.2 |   | $ | 202.5 |   | $ | 188.1 |   |
| Add:                                                                                                                                                                                                                                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portion of rents representative of the interest factor                                                                                                                                                                                                        |   |                    | 16.3   |   |   | 17.9 |   |   | 15.6 |   |   | 13.0 |   |   | 0.4 |   |
| Fixed charges                                                                                                                                                                                                                                                 |   | $                       | 444.8  |   | $ | 383.7 |   | $ | 293.8 |   | $ | 215.5 |   | $ | 188.5 |   |
|                                                                                                                                                                                                                                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of earnings to fixed charges                                                                                                                                                                                                                            |   |                    | 2.13   |   |   | 3.64 |   |   | 3.76 |   |   | 4.84 |   |   | 4.68 |   |
|                                                                                                                                                                                                                                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |