EX-12 2 apc123113exhibit12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES APC 12.31.13 Exhibit 12


EXHIBIT 12
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF COMPUTATION OF RATIOS OF
EARNINGS TO FIXED CHARGES AND EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 
 
 
Years Ended December 31,
 
 
 
(Unaudited)
millions except ratio amounts
2013
 
2012
 
2011
 
2010
 
2009
Income (loss) from continuing operations before income taxes
$
2,106

 
$
3,565

 
$
(3,424
)
 
$
1,641

 
$
(108
)
Equity (income) adjustment
(64
)
 
(110
)
 
(102
)
 
(74
)
 
(76
)
Fixed charges
1,114

 
1,209

 
1,232

 
1,289

 
1,077

Amortization of capitalized interest
36

 
17

 
29

 
41

 
46

Distributed income of equity investees
25

 
33

 
34

 
11

 
49

Capitalized interest
(263
)
 
(221
)
 
(147
)
 
(128
)
 
(69
)
Non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges
(11
)
 
(10
)
 
(7
)
 
(6
)
 
(8
)
 
Total Earnings
$
2,943

 
$
4,483

 
$
(2,385
)
 
$
2,774

 
$
911

Interest expense including capitalized interest
930

 
954

 
984

 
999

 
758

Interest expense included in other (income) expense
23

 
42

 
38

 
39

 
57

Estimated interest portion of rental expenditures
161

 
213

 
210

 
251

 
262

 
Total Fixed Charges
$
1,114

 
$
1,209

 
$
1,232

 
$
1,289

 
$
1,077

Preferred Stock Dividends
—

 
—

 
—

 
—

 
—

Combined Fixed Charges and Preferred Stock Dividends
$
1,114

 
$
1,209

 
$
1,232

 
$
1,289

 
$
1,077

Ratio of Earnings to Fixed Charges(a)
2.64

 
3.71

 
(1.94
)
 
2.15

 
0.85

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends(a)
2.64

 
3.71

 
(1.94
)
 
2.15

 
0.85

__________________________________________________________________
(a)
As a result of the Company’s net loss in 2011 and 2009, Anadarko’s earnings did not cover total fixed charges, nor combined fixed charges by $3,617 million for 2011 and $166 million for 2009.

       These ratios were computed by dividing earnings by either fixed charges or combined fixed charges and preferred stock dividends. 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. Preferred stock dividends are adjusted to reflect the amount of pretax earnings required for payment.