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 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (1,688 | ) | $ | (3,829 | ) | $ | (9,689 | ) | $ | 54 | $ | 2,106 | ||||||||
Equity (income) adjustment | (148 | ) | (120 | ) | (86 | ) | (119 | ) | (64 | ) | |||||||||||
Fixed charges | 1,397 | 1,337 | 1,240 | 1,245 | 1,173 | ||||||||||||||||
Amortization of capitalized interest | 111 | 82 | 74 | 61 | 46 | ||||||||||||||||
Distributed income of equity investees | 171 | 141 | 105 | 121 | 25 | ||||||||||||||||
Capitalized interest | (71 | ) | (132 | ) | (164 | ) | (201 | ) | (263 | ) | |||||||||||
Preference security dividend requirements of consolidated subsidiaries | (52 | ) | (105 | ) | — | — | — | ||||||||||||||
Non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges | (11 | ) | (11 | ) | (21 | ) | (14 | ) | (11 | ) | |||||||||||
Total Earnings | $ | (291 | ) | $ | (2,637 | ) | $ | (8,541 | ) | $ | 1,147 | $ | 3,012 | ||||||||
Interest expense including capitalized interest | 1,058 | 1,043 | 990 | 974 | 930 | ||||||||||||||||
Interest expense included in other (income) expense | 64 | 49 | 37 | 36 | 37 | ||||||||||||||||
Estimated interest portion of rental expenditures | 223 | 140 | 213 | 235 | 206 | ||||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | 52 | 105 | — | — | — | ||||||||||||||||
Total Fixed Charges | $ | 1,397 | $ | 1,337 | $ | 1,240 | $ | 1,245 | $ | 1,173 | |||||||||||
Preferred Stock Dividends | — | — | — | — | — | ||||||||||||||||
Combined Fixed Charges and Preferred Stock Dividends | $ | 1,397 | $ | 1,337 | $ | 1,240 | $ | 1,245 | $ | 1,173 | |||||||||||
Ratio of Earnings to Fixed Charges | * | * | * | * | 2.57 | ||||||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | * | * | * | * | 2.57 |
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* | Anadarko’s earnings did not cover total fixed charges by $1,688 for 2017, $3,974 for 2016, $9,781 million for 2015, and $98 million for 2014. |
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, interest capitalized during the year, and preference security dividend requirements of consolidated subsidiaries. Fixed charges include interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness, and estimates of interest within rental expenses.