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EL PASO CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(DOLLARS IN MILLIONS)
 2003
    
    
    2004
    
    
    2005
    
    
    2006
    
    
    2007EarningsPre-tax income (loss) from continuing operations
    
    $
    (1,392
    )
    
    $
    (1,148
    )
    
    $
    (837
    )
    
    $
    522
    
    
    $
    658Minority interests in consolidated subsidiaries
    
    
    54
    
    
    
    62
    
    
    
    11
    
    
    
    1
    
    
    
    6(Income) from equity investees
    
    
    (293
    )
    
    
    (479
    )
    
    
    (281
    )
    
    
    (145
    )
    
    
    (101
    )Pre-tax income (loss) from continuing operations before adjustment for
minority interests in
consolidated subsidiaries and (income) loss from equity investees
    
    
    (1,631
    )
    
    
    (1,565
    )
    
    
    (1,107
    )
    
    
    378
    
    
    
    563Fixed charges
    
    
    1,907
    
    
    
    1,743
    
    
    
    1,441
    
    
    
    1,354
    
    
    
    1,074Distributed income of equity investees
    
    
    291
    
    
    
    260
    
    
    
    209
    
    
    
    139
    
    
    
    189Capitalized interest
    
    
    (38
    )
    
    
    (41
    )
    
    
    (45
    )
    
    
    (45
    )
    
    
    (51
    )Preferred returns on consolidated subsidiaries
    
    
    (54
    )
    
    
    (76
    )
    
    
    (11
    )
    
    
    (1
    )
    
    
    (6
    )Total earnings available for fixed charges
    
    $
    475
    
    
    $
    321
    
    
    $
    487
    
    
    $
    1,825
    
    
    $
    1,769Fixed chargesInterest and debt expense
    
    $
    1,822
    
    
    $
    1,640
    
    
    $
    1,413
    
    
    $
    1,340
    
    
    $
    1,055Interest component of rent
    
    
    31
    
    
    
    27
    
    
    
    17
    
    
    
    13
    
    
    
    13Preferred returns on consolidated subsidiaries
    
    
    54
    
    
    
    76
    
    
    
    11
    
    
    
    1
    
    
    
    6Total fixed charges
    
    $
    1,907
    
    
    $
    1,743
    
    
    $
    1,441
    
    
    $
    1,354
    
    
    $
    1,074Ratio of earnings to fixed charges (1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.35
    
    
    
    1.65Fixed chargesInterest and debt expense
    
    $
    1,822
    
    
    $
    1,640
    
    
    $
    1,413
    
    
    $
    1,340
    
    
    $
    1,055Interest component of rent
    
    
    31
    
    
    
    27
    
    
    
    17
    
    
    
    13
    
    
    
    13Preferred returns on consolidated subsidiaries
    
    
    54
    
    
    
    76
    
    
    
    11
    
    
    
    1
    
    
    
    6Preferred stock dividend of parent
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    36
    
    
    
    56Total fixed charges and preferred stock dividend
    
    $
    1,907
    
    
    $
    1,743
    
    
    $
    1,468
    
    
    $
    1,390
    
    
    $
    1,130Ratio of earnings to combined fixed charges and preferred stock dividends (2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.31
    
    
    
    1.57
 
 (1)
    
    Earnings for the years ended December 31, 2003, 2004 and 2005 were inadequate to cover
fixed charges by $1,432 million, $1,422 million, and $954 million, respectively.(2)
    
    Earnings for the years ended December 31, 2003, 2004 and 2005 were inadequate to cover
fixed charges and preferred stock dividends by $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 tax liabilities which is included in income tax expense 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.