Plains Resources Inc. Computation of Ratios (In Thousands) Exhibit 12 ---------- 1994 1995 1996 1997 1998 1999 -------- -------- -------- -------- --------- -------- (restated) RATIO OF EARNINGS TO FIXED CHARGES Earnings Net income (loss) before income taxes, minority interest and extraordinary item $ 571 $ 2,652 $ 17,754 $ 22,586 $(106,565) $(85,469) Fixed charges 16,416 17,936 22,177 26,752 40,709 55,554 Less capitalized interest (2,728) (3,093) (3,613) (3,280) (3,683) (4,409) -------- -------- -------- -------- --------- -------- Total earnings available for fixed charges $ 14,259 $ 17,495 $ 36,318 $ 46,058 $ (69,539) $(34,324) ======== ======== ======== ======== ========= ======== Fixed charges Interest expense $ 12,585 $ 13,606 $ 17,286 $ 22,012 $ 35,730 $ 46,378 Capitalized interest 2,728 3,093 3,613 3,280 3,683 4,409 Interest portion on rentals 110 109 102 110 133 841 Amortization of debt issue costs 993 1,128 1,176 1,350 1,163 3,926 -------- -------- -------- -------- --------- -------- Total fixed charges $ 16,416 $ 17,936 $ 22,177 $ 26,752 $ 40,709 $ 55,554 ======== ======== ======== ======== ========= ======== Earnings in excess of (required to cover) fixed charges $ (2,157) $ (441) $ 14,141 $ 19,306 $(110,248) $(89,878) Earnings to fixed charges 0.9 1.0 1.6 1.7 (1.7)(A) (0.6)(B) (A) Included in earnings for 1998 was a nonrecurring gain of $60.8 million before income taxes relating to the formation of the partnership, a noncash full cost ceiling writedown of $173.9 million before income taxes and $7.1 million in unauthorized trading losses. If such events had not occurred, the ratio of earnings to fixed charges would have been 1.2. (B) Included in earnings for 1999 was $166.4 million in unauthorized trading losses, a $16.5 million gain on the sale of linefill, a $9.8 million gain related to the sale of units by PAA, and restructuring expenses of $1.4 million. If such events had not occurred, the ratio of earnings to fixed charges would have been 1.9.