EX-12 2 exh12.htm STATEMENTS RE COMPUTATION OF RATIOS

EXHIBIT 12

 

EOG RESOURCES, INC.
Computation of Ratio of Earnings to Fixed Charges and
Combined Fixed Charges and to Preferred Stock Dividends
(In Thousands)
(Unaudited)

 

Year Ended December 31

  

2006

  

2005

  

2004

  

2003

  

2002
                     

EARNINGS AVAILABLE FOR

                   

FIXED CHARGES:

                    

Net Income Before Cumulative Effect of

                    

   Change in Accounting Principle (1)

$

1,299,885 

$

1,259,576 

$

624,855 

$

437,276 

$

87,173 

Less: Capitalized Interest Expense

  

(19,900)

  

(14,596)

  

(9,631)

  

(8,541)

  

(8,987)

Add: Fixed Charges

  

80,050 

  

90,933 

  

83,264 

  

78,138 

  

77,149 

Income Tax Provision

  

612,756 

  

705,561 

  

301,157 

  

216,600 

  

32,499 

EARNINGS AVAILABLE

$

1,972,791 

$

2,041,474 

$

999,645 

$

723,473 

$

187,834 
                     
                     

FIXED CHARGES:

                    

Interest Expense

$

43,158 

$

62,506 

$

63,128 

$

58,711 

$

59,654 

Capitalized Interest

  

19,900 

  

14,596 

  

9,631 

  

8,541 

  

8,987 

Capitalized Expenses Related to Indebtedness

  

1,655 

  

2,381 

  

1,994 

  

3,477 

  

1,652 

Rental Expense Representative of Interest Factor

  

15,337 

  

11,450 

  

8,511 

  

7,409 

  

6,856 

TOTAL FIXED CHARGES

 

80,050 

  

90,933 

  

83,264 

  

78,138 

  

77,149 

Preferred Stock Dividends on a Pre-tax Basis

  

16,179 

  

11,595 

  

16,142 

  

16,497 

  

15,145 

COMBINED TOTAL FIXED CHARGES AND

                    

PREFERRED STOCK DIVIDENDS

$

96,229 

$

102,528 

$

99,406 

$

94,635 

$

92,294 
                     

RATIO OF EARNINGS TO

                    

FIXED CHARGES

  

24.64 

  

22.45 

  

12.01 

  

9.26 

  

2.43 
                     

RATIO OF EARNINGS TO

                    

COMBINED FIXED CHARGES

                    

AND PREFERRED STOCK DIVIDENDS

  

20.50 

  

19.91 

  

10.06 

  

7.64 

  

2.04 
                     

(1)  EOG adopted Statement of Financial Accounting Standards (SFAS) No. 143, "Accounting for Asset Retirement Obligations" on January 1, 2003.
       Pro forma net income for 2002 is not presented since the pro forma application of SFAS No. 143 to the prior periods would not result in pro forma
       net income materially different from the actual amount reported.