EX-12 2 h21250exv12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES exv12
 

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

Five Years Ended December 31, 2004

                                         
    Years Ended December 31  
millions except ratio amounts   2004     2003     2002     2001     2000  
Gross Income (Loss)
   $ 2,829     $ 2,227     $ 1,410     $ (298 )   $ 1,519  
Rentals
     12       10       14       14       16  
 
                              
Earnings (Loss)
     2,841       2,237       1,424       (284 )     1,535  
 
                              
 
                                        
Gross Interest Expense
     438       374       358       301       193  
Rentals
     12       10       14       14       16  
 
                              
Fixed Charges
   $ 450     $ 384     $ 372     $ 315     $ 209  
 
                              
 
                                        
Preferred Stock Dividends
     8       8       9       11       17  
 
                              
 
                                        
Combined Fixed Charges and Preferred Stock Dividends
   $ 458     $ 392     $ 381     $ 326     $ 226  
 
                              
 
                                        
Ratio of Earnings to Fixed Charges
     6.31       5.83       3.83       n/m       7.35  
 
                              
 
                                        
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
     6.20       5.71       3.74       n/m       6.80  
 
                              

n/m — not meaningful

As a result of the Company’s net loss in 2001, Anadarko’s earnings did not cover fixed charges by $599 million and did not cover combined fixed charges and preferred stock dividends by $610 million.

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 before income taxes and fixed charges. Fixed charges include interest and amortization of debt expenses and the estimated interest component of rentals. Preferred stock dividends are adjusted to reflect the amount of pretax earnings required for payment.