EX-12 3 ex12-20081q.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

 

Year Ended

 

 

 

March 31

 

December 31

 

 

 

 

2008

 

 

2007

 

 

2007

 

 

2006

 

 

2005

 

 

2004

 

 

2003

 

Income from continuing operations

 

$

1,819

 

$

1,169

 

$

5,078

 

$

4,202

 

$

4,838

 

$

2,197

 

$

1,410

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest(a)

 

 

29

 

 

7

 

 

75

 

 

111

 

 

74

 

 

76

 

 

62

 

Adjusted income from equity investments(b)

 

 

(27

)

 

3

 

 

(28

)

 

(52

)

 

(53

)

 

(5

)

 

72

 

 

 

 

1,821

 

 

1,179

 

 

5,125

 

 

4,261

 

 

4,859

 

 

2,268

 

 

1,544

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

541

 

 

272

 

 

1,577

 

 

1,545

 

 

632

 

 

891

 

 

593

 

Interest and debt expense(c)

 

 

38

 

 

217

 

 

344

 

 

297

 

 

305

 

 

270

 

 

337

 

Portion of lease rentals representative of the interest factor

 

 

7

 

 

8

 

 

60

 

 

52

 

 

47

 

 

40

 

 

8

 

 

 

 

586

 

 

497

 

 

1,981

 

 

1,894

 

 

984

 

 

1,201

 

 

938

 

Earnings before fixed charges

 

$

2,407

 

$

1,676

 

$

7,106

 

$

6,155

 

$

5,843

 

$

3,469

 

$

2,482

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense including capitalized interest(c)

 

$

50

 

$

235

 

$

403

 

$

352

 

$

331

 

$

285

 

$

343

 

Portion of lease rentals representative of the interest factor

 

 

7

 

 

8

 

 

60

 

 

52

 

 

47

 

 

40

 

 

8

 

Total fixed charges

 

$

57

 

$

243

 

$

463

 

$

404

 

$

378

 

$

325

 

$

351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

42.23

 

 

6.90

 

 

15.35

 

 

15.24

 

 

15.46

 

 

10.67

 

 

7.07

 

(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 three months ended March 31, 2007 amount includes a pre-tax interest charge of $172 million for the purchase of various debt issues in the open market.