ConocoPhillips (COP) 10-K 2004 FY Annual report

Exhibit 12

CONOCOPHILLIPS AND CONSOLIDATED SUBSIDIARIES
TOTAL ENTERPRISE
Computation of Ratio of Earnings to Fixed Charges

	Millions of Dollars
	Years Ended December 31
	2004			2003			2002		2001		2000
				(Unaudited)
Earnings Available for Fixed Charges
Income from continuing operations before income taxes	$	14,369			8,337			2,141		3,241		3,748
Distributions less than equity in earnings of fifty-percent-or-less-owned companies		(780	)		(52	)		3		58		(30	)
Fixed charges, excluding capitalized interest*		758			1,019			850		501		481
	$	14,347			9,304			2,994		3,800		4,199
Fixed Charges
Interest and expense on indebtedness, excluding capitalized interest	$	546			844			566		338		369
Capitalized interest		430			327			232		231		174
Preferred dividend requirements of subsidiary and capital trusts		—			—			38		53		53
Interest portion of rental expense		174			149			181		90		42
Interest expense relating to guaranteed debt of fifty-percent-or-less-owned companies		9			1			16		—		—
Interest expense relating to guaranteed debt of greater than fifty-percent-owned companies		—			—			3		—		—
	$	1,159			1,321			1,036		712		638
Ratio of Earnings to Fixed Charges		12.4			7.0			2.9		5.3		6.6

* Includes amortization of capitalized interest totaling approximately $29 million in 2004, $25 million in 2003, $46 million in 2002, $20 million in 2001, and $17 million in 2000.

Earnings available for fixed charges include, if any, the company’s equity in losses of companies owned less than fifty percent and having debt for which the company is contingently liable. Fixed charges include the company’s proportionate share, if any, of interest relating to the contingent debt.

Earnings available for fixed charges include, if any, 100 percent of the losses of companies owned greater than fifty percent that have debt for which the company is contingently liable. Fixed charges include 100 percent of interest and capitalized interest, if any, relating to the contingent debt.