EX-12 3 ex12-20071q.htm EXHIBIT 12 Exhibit 12

EXHIBIT 12

OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES

COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES

(Amounts in millions, except ratios)

 

 

Three Months Ended

March 31

 

Year Ended

December 31

 

 

 

 

2007

 

 

2006

 

 

2006

 

 

2005

 

 

2004

 

 

2003

 

 

2002

 

Income from continuing
operations

 

$

1,212

 

$

1,153

 

$

4,444

 

$

5,052

 

$

2,412

 

$

1,569

 

$

1,171

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest(a)

 

 

7

 

 

37

 

 

111

 

 

74

 

 

76

 

 

62

 

 

77

 

Adjusted income from equity investments(b)

 

 

3

 

 

(27

)

 

(35

)

 

(50

)

 

(6

)

 

69

 

 

308

 

 

 

 

1,222

 

 

1,163

 

 

4,520

 

 

5,076

 

 

2,482

 

 

1,700

 

 

1,556

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (credit) for taxes on
income (other than foreign oil
and gas taxes)

 

 

291

 

 

471

 

 

1,637

 

 

711

 

 

980

 

 

664

 

 

(47

)

Interest and debt expense(c)

 

 

217

 

 

70

 

 

292

 

 

300

 

 

266

 

 

335

 

 

310

 

Portion of lease rentals
representative of the interest
factor

 

 

8

 

 

12

 

 

52

 

 

47

 

 

40

 

 

8

 

 

6

 

 

 

 

516

 

 

553

 

 

1,981

 

 

1,058

 

 

1,286

 

 

1,007

 

 

269

 

Earnings before fixed charges

 

$

1,738

 

$

1,716

 

$

6,501

 

$

6,134

 

$

3,768

 

$

2,707

 

$

1,825

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense
including capitalized
interest(c)

 

$

235

 

$

80

 

$

347

 

$

326

 

$

281

 

$

341

 

$

321

 

Portion of lease rentals
representative of the interest
factor

 

 

8

 

 

12

 

 

52

 

 

47

 

 

40

 

 

8

 

 

6

 

Total fixed charges

 

$

243

 

$

92

 

$

399

 

$

373

 

$

321

 

$

349

 

$

327

 

Ratio of earnings to fixed charges

 

 

7.15

 

 

18.65

 

 

16.29

 

 

16.45

 

 

11.74

 

 

7.76

 

 

5.58

 

(a)

Represents minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges.

(b)

Represents income from less-than-50-percent-owned equity investments adjusted to reflect only dividends received.

(c)

Includes proportionate share of interest and debt expense of less-than-50-percent-owned equity investments. The first quarter of 2007 amount includes a pre-tax interest charge of $172 million for the repurchase of a portion of various debt issues totaling $659 million in principal amount in a cash tender offer.