EX-12 4 apc201510k-exhibit12.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12
ANADARKO PETROLEUM CORPORATION
CONSOLIDATED STATEMENT OF COMPUTATION OF RATIOS OF
EARNINGS TO FIXED CHARGES

 
 
 
Years Ended December 31,
 
 
 
(Unaudited)
millions except ratio amounts
2015
 
2014
 
2013
 
2012
 
2011
Income (loss) from continuing operations before income taxes
$
(9,689
)
 
$
54

 
$
2,106

 
$
3,565

 
$
(3,424
)
Equity (income) adjustment
(86
)
 
(119
)
 
(64
)
 
(110
)
 
(102
)
Fixed charges
1,240

 
1,245

 
1,173

 
1,209

 
1,232

Amortization of capitalized interest
74

 
61

 
46

 
17

 
29

Distributed income of equity investees
105

 
121

 
25

 
33

 
34

Capitalized interest
(164
)
 
(201
)
 
(263
)
 
(221
)
 
(147
)
Non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges
(21
)
 
(14
)
 
(11
)
 
(10
)
 
(7
)
 
Total Earnings
$
(8,541
)
 
$
1,147

 
$
3,012

 
$
4,483

 
$
(2,385
)
Interest expense including capitalized interest
990

 
974

 
930

 
954

 
984

Interest expense included in other (income) expense
37

 
36

 
37

 
42

 
38

Estimated interest portion of rental expenditures
213

 
235

 
206

 
213

 
210

 
Total Fixed Charges
$
1,240

 
$
1,245

 
$
1,173

 
$
1,209

 
$
1,232

Preferred Stock Dividends
—

 
—

 
—

 
—

 
—

Combined Fixed Charges and Preferred Stock Dividends
$
1,240

 
$
1,245

 
$
1,173

 
$
1,209

 
$
1,232

Ratio of Earnings to Fixed Charges
*

 
*

 
2.57

 
3.71

 
*

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
*

 
*

 
2.57

 
3.71

 
*

__________________________________________________________________
*
As a result of the Company’s net loss in 2015, 2014, and 2011, Anadarko’s earnings did not cover total fixed charges by $9,781 million for 2015, $98 million for 2014, and $3,617 million for 2011.

       These ratios were computed by dividing earnings by fixed charges. For this purpose, earnings include income from continuing operations before income taxes, adjusted for: income or loss from equity investees, fixed charges to the extent they affect current year earnings, amortization of capitalized interest, distributed income of equity investees, and interest capitalized during the year. Fixed charges include interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness, and estimates of interest within rental expenses.