EXHIBIT 12
EOG RESOURCES, INC.
Computation of Ratio of Earnings to Fixed Charges and
Combined Fixed Charges and to Preferred Stock Dividends
(In Thousands)
(Unaudited)
Year Ended December 31 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||
EARNINGS AVAILABLE FOR | ||||||||||
FIXED CHARGES: | ||||||||||
Net Income Before Cumulative Effect of | ||||||||||
Change in Accounting Principle(1) | $ | 1,299,885 | $ | 1,259,576 | $ | 624,855 | $ | 437,276 | $ | 87,173 |
Less: Capitalized Interest Expense | (19,900) | (14,596) | (9,631) | (8,541) | (8,987) | |||||
Add: Fixed Charges | 80,050 | 90,933 | 83,264 | 78,138 | 77,149 | |||||
Income Tax Provision | 612,756 | 705,561 | 301,157 | 216,600 | 32,499 | |||||
EARNINGS AVAILABLE | $ | 1,972,791 | $ | 2,041,474 | $ | 999,645 | $ | 723,473 | $ | 187,834 |
FIXED CHARGES: | ||||||||||
Interest Expense | $ | 43,158 | $ | 62,506 | $ | 63,128 | $ | 58,711 | $ | 59,654 |
Capitalized Interest | 19,900 | 14,596 | 9,631 | 8,541 | 8,987 | |||||
Capitalized Expenses Related to Indebtedness | 1,655 | 2,381 | 1,994 | 3,477 | 1,652 | |||||
Rental Expense Representative of Interest Factor | 15,337 | 11,450 | 8,511 | 7,409 | 6,856 | |||||
TOTAL FIXED CHARGES | 80,050 | 90,933 | 83,264 | 78,138 | 77,149 | |||||
Preferred Stock Dividends on a Pre-tax Basis | 16,179 | 11,595 | 16,142 | 16,497 | 15,145 | |||||
COMBINED TOTAL FIXED CHARGES AND | ||||||||||
PREFERRED STOCK DIVIDENDS | $ | 96,229 | $ | 102,528 | $ | 99,406 | $ | 94,635 | $ | 92,294 |
RATIO OF EARNINGS TO | ||||||||||
FIXED CHARGES | 24.64 | 22.45 | 12.01 | 9.26 | 2.43 | |||||
RATIO OF EARNINGS TO | ||||||||||
COMBINED FIXED CHARGES | ||||||||||
AND PREFERRED STOCK DIVIDENDS | 20.50 | 19.91 | 10.06 | 7.64 | 2.04 | |||||
(1) EOG adopted Statement of Financial Accounting Standards (SFAS) No. 143, "Accounting for Asset Retirement Obligations" on January 1, 2003.
Pro forma net income for 2002 is not presented since the pro forma application of SFAS No. 143 to the prior periods would not result in pro forma
net income materially different from the actual amount reported.