EX-12 5 oxyexhibit1210q93016.htm EXHIBIT 12

EXHIBIT 12

OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES
COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES
(Amounts in millions, except ratios)

|  | Nine Months Ended September 30 |  |  | Year Ended December 31 |  |
|  | 2016 |  |  | 2015 |  |  | 2015 |  |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |
Income from continuing operations (a) |  | $ | (734 | ) |  | $ | (2,641 | ) |  | $ | (8,146 | ) |  | $ | (130 | ) |  | $ | 4,932 |  |  | $ | 3,829 |  |  | $ | 5,527 |  |
Add/(Subtract): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to noncontrolling interest |  | — |  |  | — |  |  | — |  |  | (14 | ) |  | — |  |  | — |  |  | — |  |
Adjusted income from equity investments (b) |  | 3 |  |  | (10 | ) |  | 21 |  |  | 64 |  |  | 52 |  |  | 163 |  |  | (33 | ) |
|  | (731 | ) |  | (2,651 | ) |  | (8,125 | ) |  | (80 | ) |  | 4,984 |  |  | 3,992 |  |  | 5,494 |  |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for taxes on income (other than foreign oil and gas taxes) |  | (648 | ) |  | (768 | ) |  | (2,070 | ) |  | (280 | ) |  | 1,353 |  |  | 249 |  |  | 1,167 |  |
Interest and debt expense |  | 263 |  |  | 86 |  |  | 147 |  |  | 77 |  |  | 132 |  |  | 149 |  |  | 313 |  | (c)
Portion of lease rentals representative of the interest factor |  | 47 |  |  | 52 |  |  | 63 |  |  | 52 |  |  | 60 |  |  | 58 |  |  | 57 |  |
|  | (338 | ) |  | (630 | ) |  | (1,860 | ) |  | (151 | ) |  | 1,545 |  |  | 456 |  |  | 1,537 |  |
Earnings before fixed charges |  | $ | (1,069 | ) |  | $ | (3,281 | ) |  | $ | (9,985 | ) |  | $ | (231 | ) |  | $ | 6,529 |  |  | $ | 4,448 |  |  | $ | 7,031 |  |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and debt expense including capitalized interest |  | $ | 263 |  |  | $ | 207 |  |  | $ | 285 |  |  | $ | 257 |  |  | $ | 269 |  |  | $ | 254 |  |  | $ | 384 |  | (c)
Portion of lease rentals representative of the interest factor |  | 47 |  |  | 52 |  |  | 63 |  |  | 52 |  |  | 60 |  |  | 58 |  |  | 57 |  |
Total fixed charges |  | $ | 310 |  |  | $ | 259 |  |  | $ | 348 |  |  | $ | 309 |  |  | $ | 329 |  |  | $ | 312 |  |  | $ | 441 |  |
Ratio of earnings to fixed charges |  | (3.45 | ) |  | (12.65 | ) |  | (28.69 | ) |  | (0.75 | ) |  | 19.83 |  |  | 14.26 |  |  | 15.93 |  |
Insufficient coverage |  | (1,379 | ) | (d) | (3,540 | ) | (d) | (10,333 | ) |  | (540 | ) |  |  |  |  |  |  |  |

Note: Results of California Resources Corporation have been reflected as discontinued operations for all periods presented. |
(a) | The 2016 amount includes a $78 million dollar after-tax impairment charge related to the special stock dividend of California Resources shares in the first quarter, a $103 million dollar after-tax charge related to terminated crude oil supply agreements, and a $61 million dollar impairment charge related to the sell of Occidental's Libya operations. The 2015 amounts includes a $1.3 billion dollar after-tax charge for domestic asset impairments and other related items, a $1.5 billion dollar after-tax charge for foreign asset impairments and other related items, a $63 million dollar after-tax gain on sale of an idled chemical site, a $96 million dollar after-tax charge for cost associated with severance, the California Resources Corporation spin-off and other charges. |
(b) | Represents adjustments to arrive at distributed income from equity investees. |
(c) | Excludes a pre-tax charge of $163 million for the early redemption of debt. |
(d) | The 2016 and 2015 third quarter ratio of earnings to fixed charges excluding certain items (a) were (2.67) and (1.94), respectively. |