EX-12.1 3 h60505exv12w1.htm COMPUTATION OF RATIO OF EARNINGS exv12w1
EXHIBIT 12.1
EOG RESOURCES, INC.
Statement of Computation of Ratios of Earnings to Fixed Charges and
Earnings to Combined Fixed Charges and Preferred Stock Dividends
(In Thousands)
(Unaudited)
                                                 
    Six Months        
    Ended        
    June 30,     Year Ended December 31,  
    2008     2007     2006     2005     2004     2003  
             
EARNINGS AVAILABLE FOR FIXED CHARGES:
                                                
Net Income Before Cumulative Effect of Change in Accounting Principle (1)
   $ 419,162     $ 1,089,918     $ 1,299,885     $ 1,259,576     $ 624,855     $ 437,276  
Less: Capitalized Interest Expense
     (19,533 )     (29,324 )     (19,900 )     (14,596 )     (9,631 )     (8,541 )
Add: Fixed Charges
     51,732       96,228       80,050       90,933       83,264       78,138  
Income Tax Provision
     198,333       540,950       612,756       705,561       301,157       216,600  
 
                                    
EARNINGS AVAILABLE
   $ 649,694     $ 1,697,772     $ 1,972,791     $ 2,041,474     $ 999,645     $ 723,473  
 
                                    
 
                                                
FIXED CHARGES:
                                                
Interest Expense
   $ 20,523     $ 45,628     $ 43,158     $ 62,506     $ 63,128     $ 58,711  
Capitalized Interest
     19,533       29,324       19,900       14,596       9,631       8,541  
Capitalized Expense Related to Indebtedness
     697       1,150       1,655       2,381       1,994       3,477  
Rental Expense Representative of Interest Factor
     10,979       20,126       15,337       11,450       8,511       7,409  
 
                                    
TOTAL FIXED CHARGES
     51,732       96,228       80,050       90,933       83,264       78,138  
Preferred Stock Dividends on a Pre-tax Basis
     653       9,970       16,179       11,595       16,142       16,497  
 
                                    
COMBINED TOTAL FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
   $ 52,385     $ 106,198     $ 96,229     $ 102,528     $ 99,406     $ 94,635  
 
                                    
 
                                                
RATIO OF EARNINGS TO FIXED CHARGES
     12.56       17.64       24.64       22.45       12.01       9.26  
 
                                    
 
                                                
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
     12.40       15.99       20.50       19.91       10.06       7.64  
 
                                    
 
(1)   EOG adopted Statement of Financial Accounting Standards (SFAS) No. 143, “Accounting for Asset Retirement Obligations,” on January 1, 2003.