EX-12 15 h40249exv12.htm RATIO OF EARNINGS TO COMBINED FIXED CHARGES & PREFERRED STOCK DIVIDENDS exv12
 

Exhibit 12
EL PASO CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(DOLLARS IN MILLIONS)
                 
    For the Nine Months Ended  
    September 30,  
    2005     2006  
Earnings
                
Pre-tax income (loss) from continuing operations
   $ (213 )   $ 744  
Minority interests in consolidated subsidiaries
     12       3  
(Income) loss from equity investees
     (184 )     (166 )
 
            
 
                
Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries and (income) loss from equity investees
     (385 )     581  
 
                
Fixed charges
     1,091       1,042  
Distributed income of equity investees
     197       188  
Capitalized interest
     (31 )     (33 )
Preferred returns on consolidated subsidiaries
     (20 )     (3 )
 
            
 
                
Total earnings available for fixed charges
   $ 852     $ 1,775  
 
            
 
                
Fixed charges
                
Interest and debt expense
   $ 1,056     $ 1,028  
Interest component of rent
     15       11  
Preferred returns on consolidated subsidiaries
     20       3  
 
            
 
                
Total fixed charges
   $ 1,091     $ 1,042  
 
            
 
                
Ratio of earnings to fixed charges(1)
     —       1.70  
 
            
 
                
Fixed charges
                
Interest and debt expense
   $ 1,056     $ 1,028  
Interest component of rent
     15       11  
Preferred returns on consolidated subsidiaries
     20       3  
Preferred stock dividend of parent
     32       31  
 
            
 
                
Total fixed charges
   $ 1,123     $ 1,073  
 
            
 
                
Ratio of earnings to combined fixed charges and preferred stock dividends(2)
     —       1.65  
 
            
 
(1)   Earnings for the nine months ended September 30, 2005 were inadequate to cover fixed charges by $239 million.
 
(2)   Earnings for the nine months ended September 30, 2005 were inadequate to cover fixed charges by $271 million.
     
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.