EX-12.1 7 d448908dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

WPX Energy, Inc.

Computation of Ratio of Earnings to Fixed Charges

 

     Years Ended December 31,  
     2012     2011     2010     2009     2008  
     (Millions)  

Earnings:

          

Income (loss) from continuing operations before income taxes

   $ (344   $ (224 )   $ (893 )   $ 299     $ 1,220  

Less: Equity earnings, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees

     (30     (24     (20     (18     (20
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity earnings

     (374     (248 )     (913 )     281       1,200  

Add:

          

Fixed charges:

          

Interest accrued, including proportionate share from 50% owned investees and unconsolidated majority-owned investees (a)

     102       117       124       100       74  

Rental expense representative of interest factor

     5        3        5        3       3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

     107        120       129       103       77  

Distributed income of equity-method investees, excluding proportionate share from 50% owned investees and unconsolidated majority-owned investees

     12       17       19       9       11  

Less:

          

Capitalized interest

     (8     (9     (15     (17     (20
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings as adjusted

   $ (263   $ (120 )   $ (780 )   $ 376      $ 1,268  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges

   $ 107     $ 120     $ 129     $ 103     $ 77  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

     (b     (c )     (d )     3.65       16.47  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Does not include interest related to income taxes, including interest related to liabilities for uncertain tax positions, which is included in provision (benefit) for income taxes in our Consolidated Statements of Operations.
(b) Earnings are inadequate to cover fixed charges by $370 million.
(c) Earnings are inadequate to cover fixed charges by $240 million.
(d) Earnings are inadequate to cover fixed charges by $909 million.