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EL PASO CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(DOLLARS IN MILLIONS)
 For the Years ended December 31,2002
    
    
    2003
    
    
    2004
    
    
    2005
    
    
    2006EarningsPre-tax income (loss) from continuing operations
    
    $
    (2,246
    )
    
    $
    (1,392
    )
    
    $
    (1,148
    )
    
    $
    (837
    )
    
    $
    522Minority interests in consolidated subsidiaries
    
    
    203
    
    
    
    54
    
    
    
    62
    
    
    
    11
    
    
    
    1(Income) loss from equity investees
    
    
    290
    
    
    
    (293
    )
    
    
    (479
    )
    
    
    (281
    )
    
    
    (145
    )Pre-tax income (loss) from continuing operations before
adjustment for minority interests in consolidated subsidiaries
and (income) loss from equity investees
    
    
    (1,753
    )
    
    
    (1,631
    )
    
    
    (1,565
    )
    
    
    (1,107
    )
    
    
    378Fixed charges
    
    
    1,567
    
    
    
    1,907
    
    
    
    1,743
    
    
    
    1,441
    
    
    
    1,354Distributed income of equity investees
    
    
    179
    
    
    
    291
    
    
    
    260
    
    
    
    209
    
    
    
    139Capitalized interest
    
    
    (33
    )
    
    
    (38
    )
    
    
    (41
    )
    
    
    (45
    )
    
    
    (45
    )Preferred returns on consolidated subsidiaries
    
    
    (203
    )
    
    
    (54
    )
    
    
    (76
    )
    
    
    (11
    )
    
    
    (1
    )Total earnings available for fixed charges
    
    $
    (243
    )
    
    $
    475
    
    
    $
    321
    
    
    $
    487
    
    
    $
    1,825Fixed chargesInterest and debt expense
    
    $
    1,328
    
    
    $
    1,822
    
    
    $
    1,640
    
    
    $
    1,413
    
    
    $
    1,340Interest component of rent
    
    
    36
    
    
    
    31
    
    
    
    27
    
    
    
    17
    
    
    
    13Preferred returns on consolidated subsidiaries
    
    
    203
    
    
    
    54
    
    
    
    76
    
    
    
    11
    
    
    
    1Total fixed charges
    
    $
    1,567
    
    
    $
    1,907
    
    
    $
    1,743
    
    
    $
    1,441
    
    
    $
    1,354Ratio of earnings to fixed charges (1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.35Fixed chargesInterest and debt expense
    
    $
    1,328
    
    
    $
    1,822
    
    
    $
    1,640
    
    
    $
    1,413
    
    
    $
    1,340Interest component of rent
    
    
    36
    
    
    
    31
    
    
    
    27
    
    
    
    17
    
    
    
    13Preferred returns on consolidated subsidiaries
    
    
    203
    
    
    
    54
    
    
    
    76
    
    
    
    11
    
    
    
    1Preferred stock dividend of parent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    36Total fixed charges
    
    $
    1,567
    
    
    $
    1,907
    
    
    $
    1,743
    
    
    $
    1,468
    
    
    $
    1,390Ratio of earnings to combined fixed charges and preferred stock dividends (2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.31
 
 (1)
    
    Earnings for the years ended December 31, 2002, 2003, 2004 and 2005 were inadequate to cover fixed charges by $1,810 million, $1,432 million, $1,422 million
and $954 million, respectively.(2)
    
    Earnings for the years ended December 31, 2002, 2003, 2004 and 2005 were inadequate to cover fixed charges and preferred stock dividends by $1,810 million, $1,432 million,
$1,422 million and $981 million, respectively.  
    
    minority interests in consolidated subsidiaries;
    
    income or loss from equity investees, adjusted to reflect actual distributions from equity investments; and
    
    fixed charges;
  
    
    capitalized interest; and
    
    preferred returns on consolidated subsidiaries.
  
    
    interest costs, not including interest on rate refunds;
    
    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.