EXHIBIT 12
PENNZENERGY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
Three months ended March 31,
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1999 1998
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(Expressed in thousands)
Loss from continuing operations before income from
equity investees $ (29,343) $ (553)
Distributions of income from equity investees 598 901
Income tax provision (benefit) (19,114) (4,976)
Amortization of capitalized interest 2,341 2,098
Interest charges 32,361 40,724
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Income before income tax provision and interest charges $ (13,157) $ 38,194
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Fixed charges $ 36,958 $ 42,500
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Amount by which fixed charges exceed earnings $ 50,115 $ 4,306
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DETAIL OF INTEREST AND FIXED CHARGES
Three months ended March 31,
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1999 1998
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(Expressed in thousands)
Interest charges per consolidated statement of income
which includes amortization of debt discount, expense and premium $ 31,231 $ 40,963
Preferred stock dividends (grossed up to pre-tax, based on 38% tax rate) 3,926 -
Add: portion of rental expense representative of interest factor <F1> 1,801 1,537
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Total fixed charges $ 36,958 $ 42,500
Less: preferred stock dividends 3,926 -
Less: interest capitalized per consolidated statement of income 671 1,776
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Total interest charges $ 32,361 $ 40,724
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<FN>
<F1> Interest factor based on management's estimates and approximates one-third of rental expense.
</FN>