National Fuel Gas (NFG) 10-Q 2018 Q3 Quarterly report

EXHIBIT 12

NATIONAL FUEL GAS COMPANY

COMPUTATION OF RATIO OF

EARNINGS TO FIXED CHARGES

UNAUDITED

	For the Nine Months Ended			Fiscal Year Ended September 30,
	June 30, 2018			2017			2016			2015			2014
(Dollars in Thousands)
EARNINGS:
Net Income (Loss) Available for Common Stock	$	353,527		$	283,482		$	(290,958	)	$	(379,427	)	$	299,413
Plus Income Tax Expense (Benefit)	(23,825		)	160,682			(232,549		)	(319,136		)	189,614
Less Investment Tax Credit (A)	(74		)	(173		)	(348		)	(414		)	(434		)
Less Income from Unconsolidated Subsidiaries	—			—			—			—			(397		)
Plus Distributions from Unconsolidated Subsidiaries	—			—			—			—			—
Plus Interest Expense on Long-Term Debt	82,412			116,471			117,347			95,916			90,194
Plus Other Interest Expense	2,742			3,366			3,697			3,555			4,083
Less Amortization of Loss on Reacquired Debt	(845		)	(529		)	(529		)	(529		)	(529		)
Plus Allowance for Borrowed Funds Used in Construction	868			1,655			2,006			1,964			900
Plus Other Capitalized Interest	1,000			1,275			238			4,191			3,560
Plus Rentals (B)	5,386			4,615			9,479			13,866			13,700
	$	421,191		$	570,844		$	(391,617	)	$	(580,014	)	$	600,104
FIXED CHARGES:
Interest & Amortization of Premium and Discount of Funded Debt	$	82,412		$	116,471		$	117,347		$	95,916		$	90,194
Plus Other Interest Expense	2,742			3,366			3,697			3,555			4,083
Less Amortization of Loss on Reacquired Debt	(845		)	(529		)	(529		)	(529		)	(529		)
Plus Allowance for Borrowed Funds Used in Construction	868			1,655			2,006			1,964			900
Plus Other Capitalized Interest	1,000			1,275			238			4,191			3,560
Plus Rentals (B)	5,386			4,615			9,479			13,866			13,700
	$	91,563		$	126,853		$	132,238		$	118,963		$	111,908
RATIO OF EARNINGS TO FIXED CHARGES	4.60			4.50			(D)			(C)			5.36

(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.