EX-12.1 2 mro-20160930x10qxex121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1


MARATHON OIL CORPORATION
Computation of Ratio of Earnings to Fixed Charges (Unaudited)

 
 
Nine Months Ended
 
Year Ended
 
 
September 30,
 
December 31,
(In millions)
 
2016
 
2015
 
2014
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
 
$
(1,211
)
 
$
(2,958
)
 
$
1,361

 
$
2,393

 
$
3,104

 
$
1,615

Income from equity method investments
 
110

 
145

 
424

 
423

 
370

 
462

Income (loss) from continuing operations before income taxes and income from equity method investments
 
(1,321
)
 
(3,103
)
 
937

 
1,970

 
2,734

 
1,153

Add (deduct)
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
316

 
382

 
352

 
360

 
338

 
504

Capitalized interest
 
(21
)
 
(26
)
 
(33
)
 
(27
)
 
(68
)
 
(208
)
Amortization of capitalized interest
 
5

 
5

 
8

 
21

 
45

 
107

Distributed income from equity investees
 
137

 
178

 
454

 
430

 
382

 
499

Earnings as defined
 
(884
)
 
(2,564
)
 
1,718

 
2,754

 
3,431

 
2,055

 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest expense (including discontinued operations)
 
272

 
321

 
277

 
297

 
236

 
245

Capitalized interest (including discontinued operations)
 
21

 
26

 
33

 
27

 
68

 
208

Interest portion of rental expense (including discontinued operations)
 
23

 
35

 
42

 
36

 
34

 
51

Fixed charges as defined
 
316

 
382

 
352

 
360

 
338

 
504

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
(2.80
)
 
(6.71
)
 
4.88

 
7.65

 
10.15

 
4.08

 
 
 
 
 
 
 
 
 
 
 
 
 
Amount by which earnings were insufficient to cover fixed charges
 
$
1,200

 
$
2,946

 
$
—

 
$
—

 
$
—

 
$
—