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 September30, 2003 and Five Years Ended December 31, 2002
Nine Months | |||||||||||||||||||||||||||
Ended | |||||||||||||||||||||||||||
September 30, | Years Ended December 31 | ||||||||||||||||||||||||||
millions except ratio amounts | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | |||||||||||||||||||||
Gross Income (Loss) | $ | 1,738 | $ | 1,410 | $ | (298 | ) | $ | 1,519 | $ | 179 | $ | (7 | ) | |||||||||||||
Rentals | 7 | 14 | 14 | 16 | 11 | 12 | |||||||||||||||||||||
Earnings (Loss) | 1,745 | 1,424 | (284 | ) | 1,535 | 190 | 5 | ||||||||||||||||||||
Gross Interest Expense | 281 | 358 | 301 | 193 | 96 | 82 | |||||||||||||||||||||
Rentals | 7 | 14 | 14 | 16 | 11 | 13 | |||||||||||||||||||||
Fixed Charges | $ | 288 | $ | 372 | $ | 315 | $ | 209 | $ | 107 | $ | 95 | |||||||||||||||
Preferred Stock | |||||||||||||||||||||||||||
Dividends | 6 | 9 | 11 | 17 | 17 | 11 | |||||||||||||||||||||
Combined Fixed Charges | |||||||||||||||||||||||||||
and Preferred Stock | |||||||||||||||||||||||||||
Dividends | $ | 294 | $ | 381 | $ | 326 | $ | 226 | $ | 124 | $ | 106 | |||||||||||||||
Ratio of Earnings to | |||||||||||||||||||||||||||
Fixed Charges | 6.06 | 3.83 | n/m | 7.35 | 1.77 | 0.05 | |||||||||||||||||||||
Ratio of Earnings to | |||||||||||||||||||||||||||
Combined Fixed Charges | |||||||||||||||||||||||||||
and Preferred Stock | |||||||||||||||||||||||||||
Dividends | 5.94 | 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.