EX-12.1 7 h94446ex12-1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 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, 2001 AND FIVE YEARS ENDED DECEMBER 31, 2000
Nine Months Ended Years Ended December 31 September 30 ------------------------------------------- millions except ratio amounts 2001 2000 1999 1998 1997 1996 ------------ ------ ------ ------ ------ ------ Gross Income (Loss) $ (479) $1,519 $ 179 $ (7) $ 205 $ 197 Rentals 10 16 11 12 8 4 Earnings (Loss) (469) 1,535 190 5 213 201 Gross Interest Expense 221 193 96 82 62 56 Rentals 10 16 11 13 8 4 Fixed Charges $ 231 $ 209 $ 107 $ 95 $ 70 $ 60 Preferred Stock Dividends 9 17 17 11 -- -- Combined Fixed Charges and Preferred Stock Dividends $ 240 $ 226 $ 124 $ 106 $ 70 $ 60 Ratio of Earnings to Fixed Charges n/m 7.35 1.77 0.05 3.04 3.34 Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends n/m 6.80 1.53 0.05 3.04 3.34
As a result of the Company's net loss for the nine months ending September 2001, Anadarko's earnings did not cover fixed charges by $700 million and did not cover combined fixed charges and preferred stock dividends by $709 million. In 1998, Anadarko's earnings did not cover fixed charges by $90 million and did not cover combined fixed charges and preferred stock dividends by $101 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.