EX-12 4 h30779exv12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES, COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 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, 2005
                                         
    Years Ended December 31  
millions except ratio amounts   2005     2004     2003     2002     2001  
Gross Income (Loss)
   $ 4,096     $ 2,829     $ 2,227     $ 1,410     $ (298 )
Rentals
     15       12       10       14       14  
 
                              
Earnings (Loss)
     4,111       2,841       2,237       1,424       (284 )
 
                              
Gross Interest Expense
     270       438       374       358       301  
Rentals
     15       12       10       14       14  
 
                              
Fixed Charges
   $ 285     $ 450     $ 384     $ 372     $ 315  
 
                              
Preferred Stock Dividends
     8       8       8       9       11  
 
                              
Combined Fixed Charges and Preferred Stock Dividends
   $ 293     $ 458     $ 392     $ 381     $ 326  
 
                              
Ratio of Earnings to Fixed Charges
     14.42       6.31       5.83       3.83       n/m  
 
                              
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
     14.03       6.20       5.71       3.74       n/m  
 
                              
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.