EXHIBIT 12
THE WILLIAMS COMPANIES, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(DOLLARS IN MILLIONS)
<Table>
<Caption>
YEARS ENDED DECEMBER 31,
--------------------------------------------------
2001 2000 1999 1998 1997
-------- -------- -------- ------ --------
Earnings:
Income from continuing operations before
income taxes and extraordinary gain
(loss)................................. $1,465.6 $1,595.3 $ 585.7 $403.7 $ 703.0
Add:
Interest expense -- net................ 746.8 659.1 555.7 499.6 442.2
Rental expense representative of
interest factor...................... 31.8 27.6 28.2 24.1 24.4
Interest accrued -- 50% owned
company.............................. 9.0 8.7 7.5 6.2 --
Preferred returns and minority interest
in income of consolidated
subsidiaries......................... 67.5 58.0 38.2 7.3 7.8
Equity losses in less than 50% owned
companies............................ 27.9 16.5 13.0 -- --
Other.................................. 7.8 (8.3) (3.6) 7.6 3.1
-------- -------- -------- ------ --------
Total earnings as adjusted plus
fixed charges................... $2,356.4 $2,356.9 $1,224.7 $948.5 $1,180.5
======== ======== ======== ====== ========
Combined fixed charges and preferred stock
dividend requirements:
Interest expense -- net................ $ 746.8 $ 659.1 $ 555.7 $499.6 $ 442.2
Capitalized interest................... 40.0 49.4 34.6 13.8 15.5
Rental expense representative of
interest factor...................... 31.8 27.6 28.2 24.1 24.4
Pretax effect of dividends on preferred
stock of the Company................. -- -- 5.1 12.4 16.1
Pretax effect of dividends on preferred
stock and other preferred returns of
subsidiaries......................... 59.1 44.2 26.7 -- --
Interest accrued -- 50% owned
company.............................. 9.0 8.7 7.5 6.2 --
-------- -------- -------- ------ --------
Combined fixed charges and
preferred stock dividend
requirements.................... $ 886.7 $ 789.0 $ 657.8 $556.1 $ 498.2
======== ======== ======== ====== ========
Ratio of earnings to combined fixed charges
and preferred stock dividend
requirements.............................. 2.66 2.99 1.86 1.71 2.37
======== ======== ======== ====== ========
</Table>