1 EXHIBIT 12 UNION PACIFIC RESOURCES GROUP INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (AMOUNTS IN MILLIONS, EXCEPT RATIOS) (UNAUDITED) YEAR ENDED DECEMBER 31, -------------------------------------------------------------- 1999 1998 1997 1996 1995 Earnings from continuing operations before income taxes .... $ (51.2) $ (1,488.3) $ 418.9 $ 366.1 $ 368.3 Add (deduct) distributions greater (to extent less) than income of unconsolidated affiliates ................. 0.9 (5.8) (3.8) (4.2) 2.3 Fixed charges from below ................................... 226.1 262.3 49.0 45.9 17.8 Capitalized interest included in fixed charges ............. (0.4) (0.9) (2.0) -- (0.8) -------- ---------- -------- -------- -------- Earnings available for fixed charges................ $ 175.4 $ (1,232.7) $ 462.1 $ 407.8 $ 387.6 ======== ========== ======== ======== ======== Fixed charges: Interest expense .................................... $ 218.7 $ 249.8 $ 39.5 $ 38.9 $ 9.5 Portion of rentals representing an interest factor... 7.0 11.6 7.5 7.0 7.5 Interest capitalized ................................ 0.4 0.9 2.0 -- 0.8 -------- ---------- -------- -------- -------- Total fixed charges ........................ $ 226.1 $ 262.3 $ 49.0 $ 45.9 $ 17.8 ======== ========== ======== ======== ======== Ratio of earnings to fixed charges ......................... 0.8 (4.7) 9.4 8.9 21.8 ======== ========== ======== ======== ======== For the year ended December 31, 1999, earnings are insufficient by $50.7 million in order to cover fixed charges. For the year ended December 31, 1998, earnings are insufficient by $1,495 million in order to cover fixed charges.