EX-12 15 apc201610k-exhibit12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF COMPUTATION OF RATIOS OF
EARNINGS TO FIXED CHARGES

 
 
 
Years Ended December 31,
 
 
 
(Unaudited)
millions except ratio amounts
2016
 
2015
 
2014
 
2013
 
2012
Income (loss) from continuing operations before income taxes
$
(3,829
)
 
$
(9,689
)
 
$
54

 
$
2,106

 
$
3,565

Equity (income) adjustment
(120
)
 
(86
)
 
(119
)
 
(64
)
 
(110
)
Fixed charges
1,337

 
1,240

 
1,245

 
1,173

 
1,209

Amortization of capitalized interest
82

 
74

 
61

 
46

 
17

Distributed income of equity investees
141

 
105

 
121

 
25

 
33

Capitalized interest
(132
)
 
(164
)
 
(201
)
 
(263
)
 
(221
)
Preference security dividend requirements of consolidated subsidiaries
(105
)
 
—

 
—

 
—

 
—

Non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges
(11
)
 
(21
)
 
(14
)
 
(11
)
 
(10
)
 
Total Earnings
$
(2,637
)
 
$
(8,541
)
 
$
1,147

 
$
3,012

 
$
4,483

Interest expense including capitalized interest
1,043

 
990

 
974

 
930

 
954

Interest expense included in other (income) expense
49

 
37

 
36

 
37

 
42

Estimated interest portion of rental expenditures
140

 
213

 
235

 
206

 
213

Preference security dividend requirements of consolidated subsidiaries
105

 
—

 
—

 
—

 
—

 
Total Fixed Charges
$
1,337

 
$
1,240

 
$
1,245

 
$
1,173

 
$
1,209

Preferred Stock Dividends
—

 
—

 
—

 
—

 
—

Combined Fixed Charges and Preferred Stock Dividends
$
1,337

 
$
1,240

 
$
1,245

 
$
1,173

 
$
1,209

Ratio of Earnings to Fixed Charges
*

 
*

 
*

 
2.57

 
3.71

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
*

 
*

 
*

 
2.57

 
3.71

__________________________________________________________________
*
Anadarko’s earnings did not cover total fixed charges by $3,974 for 2016, $9,781 million for 2015, and $98 million for 2014.

       These ratios were computed by dividing earnings by fixed charges. For this purpose, earnings include income from continuing operations before income taxes, adjusted for: income or loss from equity investees, fixed charges to the extent they affect current year earnings, amortization of capitalized interest, distributed income of equity investees, and interest capitalized during the year. Fixed charges include interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness, and estimates of interest within rental expenses.