EX-12 2 exhibit_12.htm ANADARKO PETROLEUM CORPORATION FORM 10Q-EXHIBIT 12 Anadarko Petroleum Corporation Form 10Q - 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

Three Months Ended March 31, 2006 and Five Years Ended December 31, 2005

Three Months

Ended

   March 31,

Years Ended December 31

millions except ratio amounts

  2006

2005

2004

2003

2002

2001

Gross Income (Loss)

$

1,098

  

$

4,096

  

$

2,829

  

$

2,227

  

$

1,410

  

$

(298)

  

Rentals

  

4

    

15

    

12

    

10

    

14

    

14

  

Earnings (Loss)

  

1,102

    

4,111

    

2,841

    

2,237

    

1,424

    

(284)

  

                                     

Gross Interest Expense

  

66

    

270

    

438

    

374

    

358

    

301

  

Rentals

  

4

    

15

    

12

    

10

    

14

    

14

  

Fixed Charges

$

70

  

$

285

  

$

450

  

$

384

  

$

372

  

$

315

  

                                     

Preferred Stock

                                   

 Dividends

  

2

    

8

    

8

    

8

    

9

    

11

  

                                     

Combined Fixed Charges

                                   

 and Preferred Stock

                                   

 Dividends

$

72

  

$

293

  

$

458

  

$

392

  

$

381

  

$

326

  

                                     

Ratio of Earnings to

                                   

 Fixed Charges

  

15.74

    

14.42

    

6.31

    

5.83

    

3.83

    

n/m

  

                                   

Ratio of Earnings to

                                    

 Combined Fixed Charges

                                   

 and Preferred Stock

                                   

 Dividends

    

15.31

    

14.03

    

6.20

    

5.71

    

3.74

    

n/m

  

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.