1 EXHIBIT 12 UNION PACIFIC RESOURCES GROUP INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Amounts in Thousands, Except Ratios) (Unaudited) Nine Months Ended September 30, ------------- 1998 1997 ---- ---- Income (loss) before income taxes............................................ $ (51,229) $369,971 Add (deduct) distributions greater (less) than income of unconsolidated affiliates..................................... (2,581) (2,744) Fixed charges from below..................................................... 203,295 42,121 Capitalized interest included in fixed charges............................... (4,737) (1,551) --------- -------- Earnings available for fixed charges................................ $ 144,748 $407,797 ========= ======== Fixed charges: Interest expense, including amortization of debt expense/discount....... $ 195,290 $ 35,469 Portion of rentals representing an interest factor...................... 3,268 5,101 Interest capitalized.................................................... 4,737 1,551 --------- -------- Total fixed charges................................................. $ 203,295 $ 42,121 ========= ======== Ratio of earnings to fixed charges........................................... 0.7(a) 9.7 ========= ======== (a) For the nine months ended September 30, 1998, earnings are insufficient by $58.5 million to cover fixed charges of the Company.