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, |    |
|--------------------------------------------------------|--------|-------------------------|---------|
|                                                   |   | 2008                    |    | 2007 |   | 2006 |   | 2005 |   | 2004 |   |
| 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           |   | $                       | 1,182.5 |   | $ | 430.5 |   | $ | 965.8 |   | $ | 760.1 |   | $ | 769.6 |   |
| Add:                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed charges                                          |   |                    | 467.4   |   |   | 444.8 |   |   | 383.7 |   |   | 293.8 |   |   | 215.5 |   |
| Amortization of capitalized interest                   |   |                    | 3.0     |   |   | 2.0 |   |   | 1.3 |   |   | 0.8 |   |   | 0.6 |   |
| Distributed income of equity investees                 |   |                    | 158.0   |   |   | 101.6 |   |   | 66.3 |   |   | 61.1 |   |   | 63.9 |   |
| Less:                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest capitalized from continuing operations        |   |                    | (48.6   | ) |   | (31.4 | ) |   | (20.3 | ) |   | (9.8 | ) |   | (6.3 | ) |
| Minority interest in pre-tax income of subsidiaries    |   |                    | (0.3    | ) |   | (0.5 | ) |   | (0.5 | ) |   | (0.4 | ) |   | (0.1 | ) |
| with no fixed charges                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income as adjusted                                     |   | $                       | 1,762.0 |   | $ | 947.0 |   | $ | 1,396.3 |   | $ | 1,105.6 |   | $ | 1,043.2 |   |
|                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed charges:                                         |   | $                       | 446.8   |   | $ | 428.5 |   | $ | 365.8 |   | $ | 278.2 |   | $ | 202.5 |   |
| Interest and debt expense, net per statements of       |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (includes amortization of debt discount,        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| premium, and debt issuance costs; excludes             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| capitalized interest)                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Add:                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portion of rents representative of the interest factor |   |                    | 20.6    |   |   | 16.3 |   |   | 17.9 |   |   | 15.6 |   |   | 13.0 |   |
| Fixed charges                                          |   | $                       | 467.4   |   | $ | 444.8 |   | $ | 383.7 |   | $ | 293.8 |   | $ | 215.5 |   |
|                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of earnings to fixed charges                     |   |                    | 3.77    |   |   | 2.13 |   |   | 3.64 |   |   | 3.76 |   |   | 4.84 |   |
|                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |