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
Years Ended December 31, | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
millions except ratio amounts | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 54 | $ | 2,106 | $ | 3,565 | $ | (3,424 | ) | $ | 1,641 | ||||||||||
Equity (income) adjustment | (119 | ) | (64 | ) | (110 | ) | (102 | ) | (74 | ) | |||||||||||
Fixed charges | 1,245 | 1,173 | 1,209 | 1,232 | 1,289 | ||||||||||||||||
Amortization of capitalized interest | 61 | 46 | 17 | 29 | 41 | ||||||||||||||||
Distributed income of equity investees | 121 | 25 | 33 | 34 | 11 | ||||||||||||||||
Capitalized interest | (201 | ) | (263 | ) | (221 | ) | (147 | ) | (128 | ) | |||||||||||
Non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges | (14 | ) | (11 | ) | (10 | ) | (7 | ) | (6 | ) | |||||||||||
Total Earnings | $ | 1,147 | $ | 3,012 | $ | 4,483 | $ | (2,385 | ) | $ | 2,774 | ||||||||||
Interest expense including capitalized interest | 974 | 930 | 954 | 984 | 999 | ||||||||||||||||
Interest expense included in other (income) expense | 36 | 37 | 42 | 38 | 39 | ||||||||||||||||
Estimated interest portion of rental expenditures | 235 | 206 | 213 | 210 | 251 | ||||||||||||||||
Total Fixed Charges | $ | 1,245 | $ | 1,173 | $ | 1,209 | $ | 1,232 | $ | 1,289 | |||||||||||
Preferred Stock Dividends | — | — | — | — | — | ||||||||||||||||
Combined Fixed Charges and Preferred Stock Dividends | $ | 1,245 | $ | 1,173 | $ | 1,209 | $ | 1,232 | $ | 1,289 | |||||||||||
Ratio of Earnings to Fixed Charges | * | 2.57 | 3.71 | * | 2.15 | ||||||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | * | 2.57 | 3.71 | * | 2.15 |
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* | As a result of the Company’s net loss in 2014 and 2011, Anadarko’s earnings did not cover total fixed charges, nor combined fixed charges by $98 million for 2014 and $3,617 million for 2011. |
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 from continuing operations before income taxes, adjusted for: income or loss from equity investees, fixed charges to the extent they affect current year earnings, amortization of capitalized interest, distributed income of equity investees, and interest capitalized during the year. Fixed charges include interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness, and estimates of interest within rental expenses. Preferred stock dividends are adjusted to reflect the amount of pretax earnings required for payment.