National Fuel Gas (NFG) 10-Q 2016 Q2 Quarterly report

EXHIBIT 12

NATIONAL FUEL GAS COMPANY

COMPUTATION OF RATIO OF

EARNINGS TO FIXED CHARGES

UNAUDITED

	For the Twelve Months Ended			Fiscal Year Ended September 30,
	March 31, 2016			2015			2014			2013			2012
(Dollars in Thousands)
EARNINGS:
Net Income (Loss) Available for Common Stock	$	(817,633	)	$	(379,427	)	$	299,413		$	260,001		$	220,077
Plus Income Tax Expense (Benefit)	(639,812		)	(319,136		)	189,614			172,758			150,554
Less Investment Tax Credit (A)	(380		)	(414		)	(434		)	(426		)	(581		)
(Less Income) Plus Loss from Unconsolidated Subsidiaries	—			—			(397		)	204			1,442
Plus Distributions from Unconsolidated Subsidiaries	—			—			—			—			—
Plus Interest Expense on Long-Term Debt	110,595			95,916			90,194			90,273			82,002
Plus Other Interest Expense	3,798			3,555			4,083			3,838			4,238
Less Amortization of Loss on Reacquired Debt	(529		)	(529		)	(529		)	(721		)	(1,093		)
Plus (Less) Allowance for Borrowed Funds Used in Construction	2,544			1,964			900			827			1,231
Plus (Less) Other Capitalized Interest	1,423			4,191			3,560			1,801			2,992
Plus Rentals (B)	13,288			13,866			13,700			14,204			12,958
	$	(1,326,706	)	$	(580,014	)	$	600,104		$	542,759		$	473,820
FIXED CHARGES:
Interest & Amortization of Premium and Discount of Funded Debt	$	110,595		$	95,916		$	90,194		$	90,273		$	82,002
Plus Other Interest Expense	3,798			3,555			4,083			3,838			4,238
Less Amortization of Loss on Reacquired Debt	(529		)	(529		)	(529		)	(721		)	(1,093		)
Plus (Less) Allowance for Borrowed Funds Used in Construction	2,544			1,964			900			827			1,231
Plus (Less) Other Capitalized Interest	1,423			4,191			3,560			1,801			2,992
Plus Rentals (B)	13,288			13,866			13,700			14,204			12,958
	$	131,119		$	118,963		$	111,908		$	110,222		$	102,328
RATIO OF EARNINGS TO FIXED CHARGES	(D)			(C)			5.36			4.92			4.63

(A) Investment Tax Credit is included in Other Income.

(B) Rentals shown above represent the portion of all rentals (other than delay rentals) deemed representative of the interest factor.

(C) The ratio coverage for the fiscal year ended September 30, 2015 was less than 1:1. The Company would have needed to generate additional earnings of $698,977 to achieve a coverage of 1:1 for the fiscal year ended September 30, 2015.

(D) The ratio coverage for the twelve months ended March 31, 2016 was less than 1:1. The Company would have needed to generate additional earnings of $1,457,825 to achieve a coverage of 1:1 for the twelve months ended March 31, 2016.