EX-12 5 ex12-20072q.htm EXHIBIT 12 Exhibit 12

EXHIBIT 12

OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES

COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES

(Amounts in millions, except ratios)

 

 

Six Months Ended

 

Year Ended

 

 

 

June 30

 

December 31

 

 

 

2007

 

2006

 

2006

 

2005

 

2004

 

2003

 

2002

 

Income from continuing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

operations

 

$

2,314

 

$

2,229

 

$

4,202

 

$

4,838

 

$

2,197

 

$

1,410

 

$

1,131

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest(a)

 

 

28

 

 

71

 

 

111

 

 

74

 

 

76

 

 

62

 

 

77

 

Adjusted income from equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

investments(b)

 

 

4

 

 

(38

)

 

(35

)

 

(50

)

 

(6

)

 

69

 

 

308

 

 

 

 

2,346

 

 

2,262

 

 

4,278

 

 

4,862

 

 

2,267

 

 

1,541

 

 

1,516

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (credit) for taxes on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income (other than foreign oil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and gas taxes)

 

 

729

 

 

859

 

 

1,545

 

 

632

 

 

891

 

 

593

 

 

(74

)

Interest and debt expense(c)

 

 

249

 

 

143

 

 

292

 

 

300

 

 

266

 

 

335

 

 

310

 

Portion of lease rentals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

representative of the interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

factor

 

 

17

 

 

25

 

 

52

 

 

47

 

 

40

 

 

8

 

 

6

 

 

 

 

995

 

 

1,027

 

 

1,889

 

 

979

 

 

1,197

 

 

936

 

 

242

 

Earnings before fixed charges

 

$

3,341

 

$

3,289

 

$

6,167

 

$

5,841

 

$

3,464

 

$

2,477

 

$

1,758

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

including capitalized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest(c)

 

$

287

 

$

166

 

$

347

 

$

326

 

$

281

 

$

341

 

$

321

 

Portion of lease rentals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

representative of the interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

factor

 

 

17

 

 

25

 

 

52

 

 

47

 

 

40

 

 

8

 

 

6

 

Total fixed charges

 

$

304

 

$

191

 

$

399

 

$

373

 

$

321

 

$

349

 

$

327

 

Ratio of earnings to fixed charges

 

 

10.99

 

 

17.22

 

 

15.46

 

 

15.66

 

 

10.79

 

 

7.10

 

 

5.38

 

(a)

Represents minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges.

(b)

Represents income from less-than-50-percent-owned equity investments adjusted to reflect only dividends received.

(c)

Includes proportionate share of interest and debt expense of less-than-50-percent-owned equity investments. The six months ended June 30, 2007 amount includes a pre-tax interest charge of $172 million for the repurchase of a portion of various debt issues totaling $659 million in principal amount in cash tender offers.