National Fuel Gas (NFG) 10-Q 2017 Q1 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,
	December 31, 2016			2016			2015			2014			2013
(Dollars in Thousands)
EARNINGS:
Net Income (Loss) Available for Common Stock	$	(12,941	)	$	(290,958	)	$	(379,427	)	$	299,413		$	260,001
Plus Income Tax Expense (Benefit)	(31,767		)	(232,549		)	(319,136		)	189,614			172,758
Less Investment Tax Credit (A)	(304		)	(348		)	(414		)	(434		)	(426		)
(Less Income) Plus Loss from Unconsolidated Subsidiaries	—			—			0			(397		)	204
Plus Distributions from Unconsolidated Subsidiaries	—			—			—			—			—
Plus Interest Expense on Long-Term Debt	116,078			117,347			95,916			90,194			90,273
Plus Other Interest Expense	3,228			3,697			3,555			4,083			3,838
Less Amortization of Loss on Reacquired Debt	(529		)	(529		)	(529		)	(529		)	(721		)
Plus Allowance for Borrowed Funds Used in Construction	1,719			2,006			1,964			900			827
Plus Other Capitalized Interest	1,513			238			4,191			3,560			1,801
Plus Rentals (B)	7,561			9,479			13,866			13,700			14,204
	$	84,558		$	(391,617	)	$	(580,014	)	$	600,104		$	542,759
FIXED CHARGES:
Interest & Amortization of Premium and Discount of Funded Debt	$	116,078		$	117,347		$	95,916		$	90,194		$	90,273
Plus Other Interest Expense	3,228			3,697			3,555			4,083			3,838
Less Amortization of Loss on Reacquired Debt	(529		)	(529		)	(529		)	(529		)	(721		)
Plus Allowance for Borrowed Funds Used in Construction	1,719			2,006			1,964			900			827
Plus Other Capitalized Interest	1,513			238			4,191			3,560			1,801
Plus Rentals (B)	7,561			9,479			13,866			13,700			14,204
	$	129,570		$	132,238		$	118,963		$	111,908		$	110,222
RATIO OF EARNINGS TO FIXED CHARGES	(E)			(D)			(C)			5.36			4.92

(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 fiscal year ended September 30, 2016 was less than 1:1. The Company would have needed to generate additional earnings of $523,855 to achieve a coverage of 1:1 for the fiscal year ended September 30, 2016.

(E) The ratio coverage for the twelve months ended December 31, 2016 was less than 1:1. The Company would have needed to generate additional earnings of $45,012 to achieve a coverage of 1:1 for the twelve months ended December 31, 2016.