EX-12 2 compofratio.htm COMPUTATION OF RATIO EARNINGS TO CHARGES Computation of Ratio Earnings to Charges
MDU RESOURCES GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS



   
Twelve Months
Ended
September 30, 2006
  
Year
Ended
December 31, 2005
  
                   
   
(In thousands of dollars)
  
Earnings Available for Fixed Charges:
                          
                           
Net Income (a)
        
$
302,823
        
$
260,697
  
                           
Income Taxes
         
168,160
          
145,779
  
           
470,983
          
406,476
  
                           
Rents (b)
          
11,331
          
11,335
  
                           
Interest (c)
          
69,959
          
56,807
  
                           
Total Earnings Available for Fixed Charges
        
$
552,273
        
$
474,618
  
                           
Preferred Dividend Requirements
        
$
685
        
$
685
  
                           
Ratio of Income Before Income Taxes to Net Income
         
155
%
        
153
%
                           
Preferred Dividend Factor on Pretax Basis
         
1,062
          
1,048
  
                           
Fixed Charges (d)
          
88,200
          
76,814
  
                           
Combined Fixed Charges and Preferred Stock Dividends
        
$
89,262
        
$
77,862
  
                           
Ratio of Earnings to Fixed Charges
          
6.3x
          
6.2x
  
                           
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
         
6.2x
          
6.1x
  

(a)  
Net income excludes undistributed income for equity investees.

(b)  
Represents interest portion of rents estimated at 33 1/3%.

(c)  
Represents interest, amortization of debt discount and expense on all indebtedness and amortization of interest capitalized, and excludes amortization of gains or losses on reacquired debt (which, under the Federal Energy Regulatory Commission Uniform System of Accounts, is classified as a reduction of, or increase in, interest expense in the Consolidated Statements of Income) and interest capitalized.

(d)  
Represents rents (as defined above), interest, amortization of debt discount and expense on all indebtedness, and excludes amortization of gains or losses on reacquired debt (which, under the Federal Energy Regulatory Commission Uniform System of Accounts, is classified as a reduction of, or increase in, interest expense in the Consolidated Statements of Income).