EX-12.1 2 dex121.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)

 

    

Six Months
Ended

June 30, 2007

     Years Ended December 31,  
       20061     20051     20041     20031  

Income from continuing operations before income taxes

    $ 604,679     1,038,398     1,385,115     810,812     374,851  

Distributions less than equity in earnings of affiliates

      (314 )   (4,065 )   (5,514 )   (4,225 )   (209 )

Previously capitalized interest charged to earnings during period

      4,799     11,741     15,564     14,065     10,457  

Interest and expense on indebtedness, excluding capitalized interest

      1,365     9,476     8,765     34,064     20,511  

Interest portion of rentals2

      7,695     14,021     9,397     7,908     9,857  
                                

Earnings before provision for taxes and fixed charges

    $ 618,224     1,069,571     1,413,327     862,624     415,467  
                                

Interest and expense on indebtedness, excluding capitalized interest

      1,365     9,476     8,765     34,064     20,511  

Capitalized interest

      31,245     43,073     38,539     22,160     37,240  

Interest portion of rentals2

      7,695     14,021     9,397     7,908     9,857  
                                

Total fixed charges

    $ 40,305     66,570     56,701     64,132     67,608  
                                

Ratio of earnings to fixed charges

      15.3     16.1     24.9     13.5     6.1  

1

Adjusted to reflect adoption of FASB Staff Position No. AUG AIR-1; See Note B to the consolidated financial statements.

2

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

Ex. 12-1