Attached files
| file | filename |
|---|---|
| EXCEL - IDEA: XBRL DOCUMENT - EL PASO CORP/DE | Financial_Report.xls |
| 10-Q - FORM 10-Q - EL PASO CORP/DE | h72731e10vq.htm |
| EX-32.B - EX-32.B - EL PASO CORP/DE | h72731exv32wb.htm |
| EX-32.A - EX-32.A - EL PASO CORP/DE | h72731exv32wa.htm |
| EX-31.B - EX-31.B - EL PASO CORP/DE | h72731exv31wb.htm |
| EX-31.A - EX-31.A - EL PASO CORP/DE | h72731exv31wa.htm |
Exhibit 12
EL PASO CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(DOLLARS IN MILLIONS)
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(DOLLARS IN MILLIONS)
| For the three months ended March 31, | ||||||||
| 2010 | 2009 | |||||||
Earnings |
||||||||
Income (loss) before income taxes |
$ | 605 | $ | (1,483 | ) | |||
Income from equity investees |
(28 | ) | (19 | ) | ||||
Income (loss) before income taxes before
adjustment for income from equity investees |
577 | (1,502 | ) | |||||
Fixed charges |
279 | 266 | ||||||
Distributed income of equity investees |
15 | 16 | ||||||
Capitalized interest |
(26 | ) | (8 | ) | ||||
Preferred returns on consolidated subsidiaries |
(7 | ) | — | |||||
Total earnings available for fixed charges |
$ | 838 | $ | (1,228 | ) | |||
Fixed charges |
||||||||
Interest and debt expense |
$ | 269 | $ | 263 | ||||
Interest component of rent |
3 | 3 | ||||||
Preferred returns on consolidated subsidiaries |
7 | — | ||||||
Total fixed charges |
$ | 279 | $ | 266 | ||||
Ratio of earnings to fixed charges(1) |
3.00 | — | ||||||
Fixed charges |
||||||||
Interest and debt expense |
$ | 269 | $ | 263 | ||||
Interest component of rent |
3 | 3 | ||||||
Preferred returns on consolidated subsidiaries |
7 | — | ||||||
Preferred stock dividend of parent |
13 | 9 | ||||||
Total fixed charges and preferred stock dividend |
$ | 292 | $ | 275 | ||||
Ratio of earnings to combined fixed charges and preferred stock dividends(2) |
2.87 | — | ||||||
| (1) | Earnings for the quarter ended March 31, 2009 were inadequate to cover fixed charges by $1.5 billion. | |
| (2) | Earnings for the quarter ended March 31, 2009 were inadequate to cover fixed charges and preferred stock dividends by $1.5 billion. |
For purposes of computing
these ratios, earnings means income (loss) before income taxes before:
- income or loss from equity investees, adjusted to reflect actual distributions from equity investments; and
-fixed charges;
less:
-capitalized interest; and
-preferred returns on consolidated subsidiaries.
Fixed charges means the sum of the following:
-interest costs, not including interest on tax liabilities which is included in income tax expense on our income statement;
-amortization of debt costs;
-that portion of rental expense which we believe represents an interest factor; and
-preferred stock dividends and preferred returns on consolidated subsidiaries.