EX-12 2 exhibit1212013.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 2013


Exhibit 12
WPX Energy, Inc.
Computation of Ratio of Earnings to Fixed Charges
 
 
 
Years Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
 
(Millions)
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
 
$
(1,846
)
 
$
(344
)
 
$
(224
)
 
$
(893
)
 
$
299

Less: Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees
 
(23
)
 
(30
)
 
(24
)
 
(20
)
 
(18
)
Income (loss) from continuing operations before income taxes and equity earnings
 
(1,869
)
 
(374
)
 
(248
)
 
(913
)
 
281

Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investees (a)
 
108

 
102

 
117

 
124

 
100

Rental expense representative of interest factor
 
5

 
5

 
3

 
5

 
3

Total fixed charges
 
113

 
107

 
120

 
129

 
103

Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees
 
7

 
12

 
17

 
19

 
9

Less:
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
(5
)
 
(8
)
 
(9
)
 
(15
)
 
(17
)
Total earnings as adjusted
 
$
(1,754
)
 
$
(263
)
 
$
(120
)
 
$
(780
)
 
$
376

Fixed charges
 
$
113

 
$
107

 
$
120

 
$
129

 
$
103

Ratio of earnings to fixed charges
 
(b)

 
(c)

 
(d)

 
(e)

 
3.65

 __________
(a)
Does not include interest related to income taxes, including interest related to liabilities for uncertain tax positions, which is included in provision (benefit) for income taxes in our Consolidated Statements of Operations.
(b)
Earnings are inadequate to cover fixed charges by $1,867 million.
(c)
Earnings are inadequate to cover fixed charges by $370 million.
(d)
Earnings are inadequate to cover fixed charges by $240 million.
(e)
Earnings are inadequate to cover fixed charges by $909 million.