EXHIBIT 12
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF COMPUTATION OF RATIOS OF
EARNINGS TO FIXED CHARGES AND EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Nine Months Ended September 30, 2001 and Five Years Ended December 31, 2000
Nine Months | ||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||
September 30 | Year Ended December 31 | |||||||||||||||||||||||||
millions except ratio amounts | 2001 | 2000 | 1999 | 1998 | 1997 | 1996 | ||||||||||||||||||||
Gross Income (Loss) | $ | (479 | ) | $ | 1,519 | $ | 179 | $ | (7 | ) | $ | 205 | $ | 197 | ||||||||||||
Rentals | 10 | 16 | 11 | 12 | 8 | 4 | ||||||||||||||||||||
Earnings (Loss) | (469 | ) | 1,535 | 190 | 5 | 213 | 201 | |||||||||||||||||||
Gross Interest Expense | 221 | 193 | 96 | 82 | 62 | 56 | ||||||||||||||||||||
Rentals | 10 | 16 | 11 | 13 | 8 | 4 | ||||||||||||||||||||
Fixed Charges | $ | 231 | $ | 209 | $ | 107 | $ | 95 | $ | 70 | $ | 60 | ||||||||||||||
Preferred Stock | ||||||||||||||||||||||||||
Dividends | 9 | 17 | 17 | 11 | -- | -- | ||||||||||||||||||||
Combined Fixed Charges | ||||||||||||||||||||||||||
and Preferred Stock | ||||||||||||||||||||||||||
Dividends | $ | 240 | $ | 226 | $ | 124 | $ | 106 | $ | 70 | $ | 60 | ||||||||||||||
Ratio of Earnings to | ||||||||||||||||||||||||||
Fixed Charges | n/m | 7.35 | 1.77 | 0.05 | 3.04 | 3.34 | ||||||||||||||||||||
Ratio of Earnings to | ||||||||||||||||||||||||||
Combined Fixed Charges | ||||||||||||||||||||||||||
and Preferred Stock | ||||||||||||||||||||||||||
Dividends | n/m | 6.80 | 1.53 | 0.05 | 3.04 | 3.34 | ||||||||||||||||||||
As a result of the Company's net loss for the nine months ending September 2001, Anadarko's earnings did not cover fixed charges by $700 million and did not cover combined fixed charges and preferred stock dividends by $709 million. In 1998, Anadarko's earnings did not cover fixed charges by $90 million and did not cover combined fixed charges and preferred stock dividends by $101 million.
These ratios were computed by dividing earnings by either fixed charges or combined fixed charges and preferred stock dividends. For this purpose, earnings include income before income taxes and fixed charges. Fixed charges include interest and amortization of debt expenses and the estimated interest component of rentals. Preferred stock dividends are adjusted to reflect the amount of pretax earnings required for payment.
