1 EXHIBIT 12 ANADARKO PETROLEUM CORPORATION CONSOLIDATED STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS FIVE YEARS ENDED DECEMBER 31, 1998 Years Ended December 31 ---------------------------------------------------------- thousands 1998 1997 1996 1995 1994 --------- --------- --------- --------- --------- Gross Income $ (7,388) $ 205,318 $ 196,763 $ 65,624 $ 90,794 Rentals 12,477 8,266 4,234 2,457 2,814 --------- --------- --------- --------- --------- Earnings 5,089 213,584 200,997 68,081 93,608 ========= ========= ========= ========= ========= Gross Interest Expense 82,415 62,095 55,986 52,557 41,635 Rentals 12,477 8,266 4,234 2,457 2,814 Preferred Stock Dividends 10,951 -- -- -- -- --------- --------- --------- --------- --------- Fixed Charges $ 105,843 $ 70,361 $ 60,220 $ 55,014 $ 44,449 ========= ========= ========= ========= ========= Ratio of Earnings to Fixed Charges 0.05 3.04 3.34 1.24 2.11 ========= ========= ========= ========= ========= The ratios of earnings to combined fixed charges and preferred stock dividends were computed by dividing earnings by fixed charges. As a result of the Company's net loss in 1998, the Company's earnings did not cover combined fixed charges and preferred stock dividends. The earnings deficiency was $100,754 in 1998. For this purpose, earnings include income before income taxes and fixed charges. Fixed charges include interest and amortization of debt expenses, the estimated interest component of rentals and preferred stock dividends.