EX-12.1 3 apcaugust2016s-3asrex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12.1
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF COMPUTATION OF RATIOS OF
EARNINGS TO FIXED CHARGES AND EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months
 
 
 
 
 
 
 
 
 
 
 
 
 
Ended
 
 
 
Years Ended December 31,
 
June 30,
 
 
 
(Unaudited)
 
(Unaudited)
millions except ratio amounts
2015
 
2014
 
2013
 
2012
 
2011
 
2016
Income (loss) from continuing operations before income taxes
$
(9,689
)
 
$
54

 
$
2,106

 
$
3,565

 
$
(3,424
)
 
$
(2,306
)
Equity (income) adjustment
(86
)
 
(119
)
 
(64
)
 
(110
)
 
(102
)
 
(44
)
Fixed charges
1,240

 
1,245

 
1,173

 
1,209

 
1,232

 
660

Amortization of capitalized interest
74

 
61

 
46

 
17

 
29

 
36

Distributed income of equity investees
105

 
121

 
25

 
33

 
34

 
67

Capitalized interest
(164
)
 
(201
)
 
(263
)
 
(221
)
 
(147
)
 
(80
)
Preference security dividend requirements of consolidated subsidiaries
—

 
—

 
—

 
—

 
—

 
(16
)
Non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges
(21
)
 
(14
)
 
(11
)
 
(10
)
 
(7
)
 
(27
)
 
Total Earnings
$
(8,541
)
 
$
1,147

 
$
3,012

 
$
4,483

 
$
(2,385
)
 
$
(1,710
)
Interest expense including capitalized interest
990

 
974

 
930

 
954

 
984

 
517

Interest expense included in other (income) expense
37

 
36

 
37

 
42

 
38

 
23

Estimated interest portion of rental expenditures
213

 
235

 
206

 
213

 
210

 
104

Preference security dividend requirements of consolidated subsidiaries
—

 
—

 
—

 
—

 
—

 
16

 
Total Fixed Charges
$
1,240

 
$
1,245

 
$
1,173

 
$
1,209

 
$
1,232

 
$
660

Preferred Stock Dividends
—

 
—

 
—

 
—

 
—

 
—

Combined Fixed Charges and Preferred Stock Dividends
$
1,240

 
$
1,245

 
$
1,173

 
$
1,209

 
$
1,232

 
$
660

Ratio of Earnings to Fixed Charges
*

 
*

 
2.57

 
3.71

 
*

 
*

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

 
*

 
2.57

 
3.71

 
*

 
*

__________________________________________________________________
*
Anadarko’s earnings did not cover total fixed charges by $9,781 million for the year ended December 31, 2015, $98 million for the year ended December 31, 2014, $3,617 million for the year ended December 31, 2011, and $2,370 million for the six months ended June 30, 2016.

These ratios were computed by dividing earnings by either fixed charges or combined fixed charges and preferred 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, interest capitalized during the year, and preference security dividend requirements of consolidated subsidiaries. Fixed charges include interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness, estimates of interest within rental expenses, and preference security dividend requirements of consolidated subsidiaries.