Murphy Oil (MUR) 10-Q 2012 Q3 Quarterly report

EXHIBIT 12.1

Murphy Oil Corporation and Consolidated Subsidiaries

Computation of Ratio of Earnings to Fixed Charges (unaudited)

(Thousands of dollars)

	Nine Months Ended Sept. 30, 2012		Years Ended December 31,
			20111		20101		20091		20081		20071
Income from continuing operations before income taxes	$	1,360,312		1,492,644		1,325,652		1,210,917		2,702,735		810,513
Distributions greater than (less than) equity in earnings of affiliates		5,396		2,622		5,343		4,970		1,012		294
Previously capitalized interest charged to earnings during period		13,057		18,757		29,401		26,954		20,385		12,978
Interest and expense on indebtedness, excluding capitalized interest		8,918		40,700		34,728		24,391		42,152		24,784
Interest portion of rentals2		37,146		50,756		50,355		38,452		30,618		14,551
Earnings before provision for taxes and fixed charges	$	1,424,829		1,605,479		1,445,479		1,305,684		2,796,902		863,120
Interest and expense on indebtedness, excluding capitalized interest		8,918		40,700		34,728		24,391		42,152		24,784
Capitalized interest		27,360		15,131		18,444		28,614		31,459		49,881
Interest portion of rentals2		37,146		50,756		50,355		38,452		30,618		14,551
Total fixed charges	$	73,424		106,587		103,527		91,457		104,229		89,216
Ratio of earnings to fixed charges		19.4		15.1		14.0		14.3		26.8		9.7

¹  The ratio of earnings to fixed charges for all prior years have been adjusted to reflect the Company’s exploration and production operations in the United Kingdom as discontinued operations.

²  Calculated as one-third of rentals. Considered a reasonable approximation of interest factor.

Ex. 12-1