EXHIBIT 12-2
MCN ENERGY ENTERPRISES INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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Twelve Months |
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Twelve Months |
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Twelve Months |
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Ended |
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Ended |
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Ended |
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September 30, 1999 |
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December 31, 1998 |
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December 31, 1997 |
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(Dollars in Thousands) |
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EARNINGS AS DEFINED(1) |
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Pre-tax income(2)(4)(5) |
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$ |
(196,852 |
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$ |
(611,638 |
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$ |
37,929 |
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Fixed charges(3) |
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97,452 |
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92,822 |
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65,891 |
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Earnings as defined |
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$ |
(99,400 |
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$ |
(518,816 |
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$ |
103,820 |
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FIXED CHARGES AS DEFINED(1) |
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Interest, expensed |
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$ |
95,250 |
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$ |
90,451 |
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$ |
64,434 |
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Interest, capitalized |
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7,940 |
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15,239 |
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15,002 |
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Amortization of debt discounts, premium and expense |
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1,920 |
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1,915 |
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1,183 |
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Interest implicit in rentals |
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282 |
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456 |
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274 |
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Fixed charges as defined |
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$ |
105,392 |
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$ |
108,061 |
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$ |
80,893 |
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Ratio of Earnings to Fixed Charges |
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1.28 |
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Coverage Deficiency(6)(7) |
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$ |
204,792 |
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$ |
626,877 |
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| (1) |
Earnings and fixed charges are defined and computed in accordance
with Item 503 of Regulation S-K. |
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| (2) |
This amount represents the aggregate of (a) the pre-tax
income from continuing operations of MCN Energy Enterprises Inc.,
(MCNEE) and its majority-owned subsidiaries,
(b) MCNEE’s share of pre-tax income of its 50% owned
companies, and (c) any income actually received from less
than 50% owned companies. |
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| (3) |
Fixed charges added to earnings are adjusted to exclude interest
capitalized during the period. |
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| (4) |
For the twelve-month period ended September 30, 1999, MCNEE
recorded several unusual charges, consisting of property
write-downs, investment loss, and losses on sale of properties,
totaling $134,131,000 pre-tax ($87,185,000 net of taxes). |
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| (5) |
For the twelve-month period ended December 31, 1998, MCNEE
recorded several unusual charges, consisting of property
write-downs, investment loss and restructuring charges, totaling
$564,984,000 pre-tax ($367,239,000 net of taxes). |
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| (6) |
Earnings for the twelve-month period ended September 30,
1999, were not adequate to cover fixed charges. The amount of the
coverage deficiency was $204,792,000. The amount of the coverage
deficiency excluding unusual charges would have been
$70,661,000. |
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| (7) |
Earnings for the twelve-month period ended December 31,
1998, were not adequate to cover fixed charges. The amount of the
coverage deficiency was $626,877,000. The amount of the coverage
deficiency excluding unusual charges would have been
$61,893,000. |
