Exhibit 12 UNION PACIFIC RESOURCES GROUP INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Amounts in Thousands, Except Ratios) (Unaudited) Six Months Years Ended December 31, Ended ---------------------------------------------------------------- 6/30/98 1997 1996 1995 1994 1993 ---------- ---- ---- ---- ---- ---- Earnings (loss) from continuing operations before income taxes(a)................. $ (5,949) $466,434 $472,575 $457,979 $520,703 $440,077 Add (deduct) distributions greater (to extent less) than income of unconsolidated affiliates.............. (1,208) (3,791) (4,147) 2,263 (5,449) 1,323 Fixed charges from below.................. 125,976 64,473 57,702 27,566 11,841 10,809 Capitalized interest included in fixed charges................................ (3,057) (3,846) (157) (972) (909) (1,475) -------- -------- -------- -------- -------- -------- Earnings available for fixed charges $115,762 $523,270 $525,973 $486,836 $526,186 $450,734 ======== ======== ======== ======== ======== ======== Fixed charges: Interest expense, including amortization of debt expense/ discount(b)......................... $117,488 $ 53,108 $ 50,582 $ 19,143 $ 4,612 $ 3,143 Portion of rentals representing an interest factor.................... 5,431 7,519 6,963 7,451 6,320 6,191 Interest capitalized.................. 3,057 3,846 157 972 909 1,475 -------- -------- -------- -------- -------- -------- Total fixed charges................ $125,976 $ 64,473 $ 57,702 $ 27,566 $ 11,841 $ 10,809 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges....... 0.9(c) 8.1 9.1 17.7 44.4 41.7 ======== ======== ======== ======== ======== ======== - ---------- (a) Before cumulative effect of changes in accounting principles of $59,032 in 1992. (b) Beginning in 1995, interest expense includes the effects of debt incurred in October 1995 in connection with the Company's asset restructuring and initial public offering and debt incurred in October and November 1996 to refinance such initial debt (see Note 2 to the Consolidated Financial Statements). (c) Due to lower earnings, primarily caused by lower hydrocarbon prices and higher fixed charges resulting from higher interest expense, earnings are deficient by $10,214 to cover fixed charges.