EX-12 6 apc201410k-exhibit12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES APC 2014 10K - 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
2014
 
2013
 
2012
 
2011
 
2010
Income (loss) from continuing operations before income taxes
$
54

 
$
2,106

 
$
3,565

 
$
(3,424
)
 
$
1,641

Equity (income) adjustment
(119
)
 
(64
)
 
(110
)
 
(102
)
 
(74
)
Fixed charges
1,245

 
1,173

 
1,209

 
1,232

 
1,289

Amortization of capitalized interest
61

 
46

 
17

 
29

 
41

Distributed income of equity investees
121

 
25

 
33

 
34

 
11

Capitalized interest
(201
)
 
(263
)
 
(221
)
 
(147
)
 
(128
)
Non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges
(14
)
 
(11
)
 
(10
)
 
(7
)
 
(6
)
 
Total Earnings
$
1,147

 
$
3,012

 
$
4,483

 
$
(2,385
)
 
$
2,774

Interest expense including capitalized interest
974

 
930

 
954

 
984

 
999

Interest expense included in other (income) expense
36

 
37

 
42

 
38

 
39

Estimated interest portion of rental expenditures
235

 
206

 
213

 
210

 
251

 
Total Fixed Charges
$
1,245

 
$
1,173

 
$
1,209

 
$
1,232

 
$
1,289

Preferred Stock Dividends
—

 
—

 
—

 
—

 
—

Combined Fixed Charges and Preferred Stock Dividends
$
1,245

 
$
1,173

 
$
1,209

 
$
1,232

 
$
1,289

Ratio of Earnings to Fixed Charges
*

 
2.57

 
3.71

 
*

 
2.15

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

 
2.57

 
3.71

 
*

 
2.15

__________________________________________________________________
*
As a result of the Company’s net loss in 2014 and 2011, Anadarko’s earnings did not cover total fixed charges, nor combined fixed charges by $98 million for 2014 and $3,617 million for 2011.

       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.