EX-12 3 exhibit12_093005.htm ANADARKO FORM 10Q 3RD QTR 2005 - EXHIBIT 12 Anadarko Petroleum Corporation Form 10Q 3rd Quarter 2005 - EXHIBIT 12

Exhibit 12

 

ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF COMPUTATION OF RATIOS OF
EARNINGS TO FIXED CHARGES AND EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Nine Months Ended September 30, 2005 and Five Years Ended December 31, 2004

Nine Months

Ended

   September 30,

Years Ended December 31

millions except ratio amounts

  2005

2004

2003

2002

2001

2000

Gross Income (Loss)

$

2,679

  

$

2,829

  

$

2,227

  

$

1,410

  

$

(298

)

$

1,519

  

Rentals

  

12

    

12

    

10

    

14

    

14

    

16

  

Earnings (Loss)

  

2,691

    

2,841

    

2,237

    

1,424

    

(284

)

  

1,535

  

                                     

Gross Interest Expense

  

204

    

438

    

374

    

358

    

301

    

193

  

Rentals

  

12

    

12

    

10

    

14

    

14

    

16

  

Fixed Charges

$

216

  

$

450

  

$

384

  

$

372

  

$

315

  

$

209

  

                                     

Preferred Stock

                                   

 Dividends

  

6

    

8

    

8

    

9

    

11

    

17

  

                                     

Combined Fixed Charges

                                   

 and Preferred Stock

                                   

 Dividends

$

222

  

$

458

  

$

392

  

$

381

  

$

326

  

$

226

  

                                     

Ratio of Earnings to

                                   

 Fixed Charges

  

12.46

    

6.31

    

5.83

    

3.83

    

n/m

    

7.35

  

                                   

Ratio of Earnings to

                                    

 Combined Fixed Charges

                                   

 and Preferred Stock

                                   

 Dividends

    

12.12

    

6.20

    

5.71

    

3.74

    

n/m

    

6.80

  

n/m - not meaningful

                                    

As a result of the Company's net loss in 2001, Anadarko's earnings did not cover fixed charges by $599 million and did not cover combined fixed charges and preferred stock dividends by $610 million.

These ratios were computed by dividing earnings by either fixed charges or combined fixed charges and preferred stock dividends. For this purpose, earnings include income before income taxes and fixed charges. Fixed charges include interest and amortization of debt expenses and the estimated interest component of rentals. Preferred stock dividends are adjusted to reflect the amount of pretax earnings required for payment.