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EXHIBIT 12.1
EL PASO ENERGY CORPORATION
COMPUTATION OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED AND PREFERENCE STOCK DIVIDEND REQUIREMENTS
YEAR ENDED DECEMBER 31,
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1998 1997 1996 1995 1994
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(DOLLARS IN MILLIONS)
Earnings
Income from continuing operations................. $ 225 $ 186 $ 38 $ 85 $ 90
Income taxes...................................... 127 129 25 48 58
Minority interest................................. 25 25 2 0 0
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Income from continuing operations before income
taxes and minority interest.................... 377 340 65 133 148
Interest and debt expense......................... 262 218 100 85 76
Interest component of rentals..................... 9 7 5 3 3
Distributions in excess of earnings on equity
investments (undistributed earnings on equity
investments)................................... (28) -- -- -- --
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Total earnings available for fixed
charges................................ $ 620 $ 565 $ 170 $ 221 $ 227
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Fixed charges
Interest and debt expense......................... $ 262 $ 218 $ 100 $ 85 $ 76
Interest components of rentals.................... 9 7 5 3 3
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Fixed charges excluding preferred stock dividend
requirement.................................... 271 225 105 88 79
Preferred stock dividend requirements............. 37 25 2 -- --
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Total fixed charges....................... $ 308 $ 250 $ 107 $ 88 $ 79
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Ratio of Earnings to Fixed Charges(1)............... 2.01 2.26 1.59 2.51 2.87
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(1) The ratio of earnings to combined fixed charges and preferred and
preference stock dividend requirements for the periods presented is the
same as the ratio of earnings to fixed charges since El Paso Energy has no
outstanding preferred stock or preference stock and, therefore, no dividend
requirements.
For purposes of calculating these ratios: (i) "fixed charges" represent
interest cost (exclusive of interest on rate refunds), amortization of debt
costs, the estimated portion of rental expense representing the interest factor,
and pretax preferred stock dividend requirements of majority-owned subsidiaries;
and (ii) "earnings" represent the aggregate of income from continuing operations
before income taxes, interest expense (exclusive of interest on rate refunds),
amortization of debt costs, the portion of rental expense representing the
interest factor, and the actual amount of any preferred stock dividend
requirements of majority owned subsidiaries, adjusted to reflect actual
distributions from equity investments.