EX-12 3 ex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12.1

 

EOG RESOURCES, INC.
Computation of Ratio of Earnings to Fixed Charges and
Combined Fixed Charges and to Preferred Stock Dividends
(In Thousands)
(Unaudited)

 
   

Six Months

                    
   

Ended

                    
   

June 30,

  

Year Ended December 31,
   

2007

  

2006

  

2005

  

2004

  

2003

  

2002
                         

EARNINGS AVAILABLE FOR

                       

FIXED CHARGES:

                        

Net Income Before Cumulative Effect of

   Change in Accounting Principle (1)

$

524,720 

$

1,299,885 

$

1,259,576 

$

624,855 

$

437,276 

$

87,173 

Less: Capitalized Interest Expense

  

(13,049)

  

(19,900)

  

(14,596)

  

(9,631)

  

(8,541)

  

(8,987)

Add: Fixed Charges

  

40,942 

  

80,050 

  

90,933 

  

83,264 

  

78,138 

  

77,149 

Income Tax Provision

  

276,470 

  

612,756 

  

705,561 

  

301,157 

  

216,600 

  

32,499 

EARNINGS AVAILABLE

$

829,083 

$

1,972,791 

$

2,041,474 

$

999,645 

$

723,473 

$

187,834 
                         
                         

FIXED CHARGES:

                        

Interest Expense

$

17,755 

$

43,158 

$

62,506 

$

63,128 

$

58,711 

$

59,654 

Capitalized Interest

13,049 

19,900 

14,596 

9,631 

8,541 

8,987 

Capitalized Expenses Related

                        

   to Indebtedness

  

701 

  

1,655 

  

2,381 

  

1,994 

  

3,477 

  

1,652 

Rental Expense Representative of

                        

   Interest Factor

  

9,437 

  

15,337 

  

11,450 

  

8,511 

  

7,409 

  

6,856 

TOTAL FIXED CHARGES

$

40,942 

$

80,050 

$

90,933 

$

83,264 

$

78,138 

$

77,149 
                         

RATIO OF EARNINGS TO

                        

FIXED CHARGES

  

20.25 

  

24.64 

  

22.45 

  

12.01 

  

9.26 

  

2.43 
                         

(1) EOG adopted Statement of Financial Accounting Standards (SFAS) No. 143, "Accounting for Asset Retirement Obligations" on January 1, 2003.
     Pro forma net income for 2002 is not presented since the pro forma application of SFAS No. 143 to the prior periods would not result in pro forma
     net income materially different from the actual amount reported.