EX-12.1 6 mro-20171231x10kxex121.htm EXHIBIT 12.1 Exhibit
Exhibit 12.1





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

 
 
Year Ended
 
 
December 31,
(In millions)
 
2017
 
2016
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
 
$
(454
)
 
$
(1,164
)
 
$
(2,439
)
 
$
1,021

 
$
2,104

Income from equity method investments
 
256

 
175

 
145

 
424

 
423

Income (loss) from continuing operations before income taxes and income from equity method investments
 
(710
)
 
(1,339
)
 
(2,584
)
 
597

 
1,681

Add (deduct)
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
357

 
421

 
382

 
352

 
360

Capitalized interest
 
(4
)
 
(23
)
 
(26
)
 
(33
)
 
(27
)
Amortization of capitalized interest
 
9

 
7

 
5

 
8

 
21

Distributed income from equity investees
 
276

 
192

 
178

 
454

 
430

Earnings as defined
 
(72
)
 
(742
)
 
(2,045
)
 
1,378

 
2,465

 
 
 
 
 
 
 
 
 
 
 
Net interest expense (including discontinued operations)
 
323

 
367

 
321

 
277

 
297

Capitalized interest (including discontinued operations)
 
4

 
23

 
26

 
33

 
27

Interest portion of rental expense (including discontinued operations)
 
30

 
31

 
35

 
42

 
36

Fixed charges as defined
 
357

 
421

 
382

 
352

 
360

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
(0.20
)
 
(1.76
)
 
(5.35
)
 
3.91

 
6.85

 
 
 
 
 
 
 
 
 
 
 
Amount by which earnings were insufficient to cover fixed charges
 
$
429

 
$
1,163

 
$
2,427

 
$
—

 
$
—

* We closed the sale of our Angola assets in the first quarter of 2014, the sale of our Norway business in the fourth quarter of 2014 and the sale of our Canadian business in the second quarter of 2017. All previous periods have been recast to reflect these businesses as discontinued operations.