1
EXHIBIT 12.1
RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
YEARS ENDED DECEMBER 31,
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1989 1990 1991 1992 1993
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Net pretax income....................... $ 246,650 $ 268,886 $ 447,972 $ 213,206 $ 26,983(1)
Fixed charges
Interest expense...................... 72,099 82,244 88,377 20,261 30,506
Preferred stock dividends of a
subsidiary......................... 7,994 11,791 5,934 4,674 1,681
Capitalized debt cost................. 2,736 2,677 3,044 913 1,536
Interest portion of rent expenses..... 6,521 6,915 6,201 2,840 2,777
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Total fixed charges........... 89,350 103,627 103,556 28,688 36,500
Less: Capitalized interest, net....... 14,169 13,313 39,852 14,408 4,623
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75,181 90,314 63,704 14,280 31,877
Earnings before fixed charges........... $ 321,831 $ 359,200 $ 511,676 $ 227,486 $ 58,860
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Ratio of earnings to fixed charges...... 3.60 3.47 4.94 7.93 1.61
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(1) During 1993, the Company recorded a non-cash charge to depreciation,
depletion and amortization of $103 million pretax ($48 million after-tax)
for the write-down of its investment in the U.K. North Sea's Piper field.
Excluding the effect of the Piper write-down, the ratio of earnings to fixed
charges for 1993 would have been 4.45.