EXHIBIT 12
OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES
COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES
(Amounts in millions, except ratios)
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Six Months Ended |
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Year Ended |
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June 30 |
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December 31 |
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2007 |
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2006 |
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2006 |
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2005 |
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2004 |
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2003 |
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2002 |
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Income from continuing |
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operations |
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$ |
2,314 |
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$ |
2,229 |
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$ |
4,202 |
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$ |
4,838 |
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$ |
2,197 |
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$ |
1,410 |
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$ |
1,131 |
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Add: |
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Minority interest(a) |
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28 |
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|
71 |
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|
111 |
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|
74 |
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|
76 |
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|
62 |
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|
77 |
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Adjusted income from equity |
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investments(b) |
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4 |
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(38 |
) |
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(35 |
) |
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(50 |
) |
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(6 |
) |
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69 |
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|
308 |
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|
2,346 |
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|
2,262 |
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4,278 |
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|
4,862 |
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2,267 |
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1,541 |
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|
1,516 |
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Add: |
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Provision (credit) for taxes on |
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income (other than foreign oil |
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and gas taxes) |
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729 |
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|
859 |
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1,545 |
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|
632 |
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|
891 |
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|
593 |
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(74 |
) |
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Interest and debt expense(c) |
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|
249 |
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|
143 |
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|
292 |
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|
300 |
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|
266 |
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|
335 |
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|
310 |
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Portion of lease rentals |
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representative of the interest |
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factor |
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17 |
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|
25 |
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|
52 |
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|
47 |
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|
40 |
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8 |
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6 |
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|
995 |
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1,027 |
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|
1,889 |
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|
979 |
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1,197 |
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|
936 |
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|
242 |
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Earnings before fixed charges |
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$ |
3,341 |
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$ |
3,289 |
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$ |
6,167 |
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$ |
5,841 |
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$ |
3,464 |
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$ |
2,477 |
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$ |
1,758 |
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Fixed charges |
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Interest and debt expense |
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including capitalized |
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interest(c) |
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$ |
287 |
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$ |
166 |
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$ |
347 |
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$ |
326 |
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$ |
281 |
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$ |
341 |
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$ |
321 |
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Portion of lease rentals |
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representative of the interest |
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factor |
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|
17 |
|
|
25 |
|
|
52 |
|
|
47 |
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|
40 |
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|
8 |
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|
6 |
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Total fixed charges |
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$ |
304 |
|
$ |
191 |
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$ |
399 |
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$ |
373 |
|
$ |
321 |
|
$ |
349 |
|
$ |
327 |
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Ratio of earnings to fixed charges |
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|
10.99 |
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|
17.22 |
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|
15.46 |
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|
15.66 |
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|
10.79 |
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|
7.10 |
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|
5.38 |
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(a) |
Represents minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges. |
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(b) |
Represents income from less-than-50-percent-owned equity investments adjusted to reflect only dividends received. |
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(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. |