EX-12.1 2 d417866dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

Murphy Oil Corporation and Consolidated Subsidiaries

Computation of Ratio of Earnings to Fixed Charges (unaudited)

(Thousands of dollars)

 

     Nine Months
Ended

Sept. 30, 2012
     Years Ended December 31,  
        20111      20101      20091      20081      20071  

Income from continuing operations before income taxes

   $ 1,360,312         1,492,644         1,325,652         1,210,917         2,702,735         810,513   

Distributions greater than (less than) equity in earnings of affiliates

     5,396         2,622         5,343         4,970         1,012         294   

Previously capitalized interest charged to earnings during period

     13,057         18,757         29,401         26,954         20,385         12,978   

Interest and expense on indebtedness, excluding capitalized interest

     8,918         40,700         34,728         24,391         42,152         24,784   

Interest portion of rentals2

     37,146         50,756         50,355         38,452         30,618         14,551   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Earnings before provision for taxes and fixed charges

   $ 1,424,829         1,605,479         1,445,479         1,305,684         2,796,902         863,120   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Interest and expense on indebtedness, excluding capitalized interest

     8,918         40,700         34,728         24,391         42,152         24,784   

Capitalized interest

     27,360         15,131         18,444         28,614         31,459         49,881   

Interest portion of rentals2

     37,146         50,756         50,355         38,452         30,618         14,551   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed charges

   $ 73,424         106,587         103,527         91,457         104,229         89,216   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratio of earnings to fixed charges

     19.4         15.1         14.0         14.3         26.8         9.7   

 

1 

The ratio of earnings to fixed charges for all prior years have been adjusted to reflect the Company’s exploration and production operations in the United Kingdom as discontinued operations.

2 

Calculated as one-third of rentals. Considered a reasonable approximation of interest factor.

 

Ex. 12-1