EX-12 2 h34860exv12.htm RATIO OF EARNINGS TO COMBINED FIXED CHARGES exv12
 

Exhibit 12
EL PASO CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(DOLLARS IN MILLIONS)
                 
    For the Three Months Ended  
    March 31,  
    2005     2006  
Earnings
                
Pre-tax income (loss) from continuing operations
   $ 114     $ 540  
Minority interests in consolidated subsidiaries
     7       1  
(Income) loss from equity investees
     (190 )     (45 )
 
            
 
                
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries and (income) loss from equity investees
     (69 )     496  
 
                
Fixed charges
     368       367  
Distributed income of equity investees
     83       55  
Capitalized interest
     (9 )     (10 )
Preferred returns on consolidated subsidiaries
     (7 )     (1 )
 
            
 
                
Total earnings available for fixed charges
   $ 366     $ 907  
 
            
 
                
Fixed charges
                
Interest and debt expense
   $ 356     $ 362  
Interest component of rent
     5       4  
Preferred returns on consolidated subsidiaries
     7       1  
 
            
 
                
Total fixed charges
   $ 368     $ 367  
 
            
 
                
Ratio of earnings to fixed charges(1)
     —       2.47  
 
            
 
                
Fixed charges
                
Interest and debt expense
   $ 356     $ 362  
Interest component of rent
     5       4  
Preferred returns on consolidated subsidiaries
     7       1  
Preferred stock dividend of parent
     —       14  
 
            
 
                
Total fixed charges
   $ 368     $ 381  
 
            
 
                
Ratio of earnings to combined fixed charges and preferred stock dividends(1)
     —       2.38  
 
            
 
(1)   Earnings were inadequate to cover fixed charges by $2 million for the quarter ended March 31, 2005
         
For purposes of computing these ratios, earnings means pre-tax income (loss) from continuing operations before:
  
 
 
  - minority interests in consolidated subsidiaries;
 
  - income or loss from equity investees, adjusted to reflect actual distributions from equity investments; and
 
  - fixed charges;
less:
  
 
 
  - capitalized interest; and
 
  - preferred returns on consolidated subsidiaries.
 
   
Fixed charges means the sum of the following:
  
 
 
  - interest costs, not including interest on rate refunds;
 
  - amortization of debt costs;
 
  - that portion of rental expense which we believe represents an interest factor; and
 
  - preferred stock dividends and preferred returns on consolidated subsidiaries.