EXHIBIT 12
OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES
COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES
(Amounts in millions, except ratios)
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| Six Months Ended |
| Year Ended |
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| June 30 |
| December 31 |
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| 2007 |
| 2006 |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Income from continuing |
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operations |
| $ | 2,314 |
| $ | 2,229 |
| $ | 4,202 |
| $ | 4,838 |
| $ | 2,197 |
| $ | 1,410 |
| $ | 1,131 |
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Add: |
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Minority interest(a) |
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| 28 |
|
| 71 |
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| 111 |
|
| 74 |
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| 76 |
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| 62 |
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| 77 |
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Adjusted income from equity |
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investments(b) |
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| 4 |
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| (38 | ) |
| (35 | ) |
| (50 | ) |
| (6 | ) |
| 69 |
|
| 308 |
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|
| 2,346 |
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| 2,262 |
|
| 4,278 |
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| 4,862 |
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| 2,267 |
|
| 1,541 |
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| 1,516 |
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Add: |
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Provision (credit) for taxes on |
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income (other than foreign oil |
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and gas taxes) |
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| 729 |
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| 859 |
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| 1,545 |
|
| 632 |
|
| 891 |
|
| 593 |
|
| (74 | ) |
Interest and debt expense(c) |
|
| 249 |
|
| 143 |
|
| 292 |
|
| 300 |
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| 266 |
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| 335 |
|
| 310 |
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Portion of lease rentals |
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representative of the interest |
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factor |
|
| 17 |
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| 25 |
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| 52 |
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| 47 |
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| 40 |
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| 8 |
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| 6 |
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|
| 995 |
|
| 1,027 |
|
| 1,889 |
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| 979 |
|
| 1,197 |
|
| 936 |
|
| 242 |
|
Earnings before fixed charges |
| $ | 3,341 |
| $ | 3,289 |
| $ | 6,167 |
| $ | 5,841 |
| $ | 3,464 |
| $ | 2,477 |
| $ | 1,758 |
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Fixed charges |
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Interest and debt expense |
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including capitalized |
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interest(c) |
| $ | 287 |
| $ | 166 |
| $ | 347 |
| $ | 326 |
| $ | 281 |
| $ | 341 |
| $ | 321 |
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Portion of lease rentals |
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representative of the interest |
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factor |
|
| 17 |
|
| 25 |
|
| 52 |
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| 47 |
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| 40 |
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| 8 |
|
| 6 |
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Total fixed charges |
| $ | 304 |
| $ | 191 |
| $ | 399 |
| $ | 373 |
| $ | 321 |
| $ | 349 |
| $ | 327 |
|
Ratio of earnings to fixed charges |
|
| 10.99 |
|
| 17.22 |
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| 15.46 |
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| 15.66 |
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| 10.79 |
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| 7.10 |
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| 5.38 |
|
(a) | Represents minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges. |
(b) | Represents income from less-than-50-percent-owned equity investments adjusted to reflect only dividends received. |
(c) | Includes proportionate share of interest and debt expense of less-than-50-percent-owned equity investments. The six months ended June 30, 2007 amount includes a pre-tax interest charge of $172 million for the repurchase of a portion of various debt issues totaling $659 million in principal amount in cash tender offers. |
