Anadarko Petroleum 10-Q 2003 Q2 Quarterly report

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

Six Months Ended June 30, 2003 and Five Years Ended December 31, 2002

	Six Months
	Ended
		June 30,			Years Ended December 31
millions except ratio amounts			2003			2002			2001				2000			1999			1998
Gross Income (Loss)	$			1,200	$		1,410	$		(298	)	$		1,519	$		179	$		(7	)
Rentals				5			14			14				16			11			12
Earnings (Loss)				1,205			1,424			(284	)			1,535			190			5
Gross Interest Expense				192			358			301				193			96			82
Rentals				5			14			14				16			11			13
Fixed Charges	$			197	$		372	$		315		$		209	$		107	$		95
Preferred Stock
Dividends				3			9			11				17			17			11
Combined Fixed Charges
and Preferred Stock
Dividends	$			200	$		381	$		326		$		226	$		124	$		106
Ratio of Earnings to
Fixed Charges				6.12			3.83			n/m				7.35			1.77			0.05
Ratio of Earnings to
Combined Fixed Charges
and Preferred Stock
Dividends				6.03			3.74			n/m				6.80			1.53			0.05
n/m - not meaningful

As a result of the Company's net loss in 2001, Anadarko's earnings did not cover fixed charges by $599 million and did not cover combined fixed charges and preferred stock dividends by $610 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.