EXHIBIT 12
COMPUTATION OF RATIOS
EL PASO ENERGY
COMPUTATION OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED AND PREFERENCE STOCK DIVIDEND REQUIREMENTS
(DOLLARS IN MILLIONS)
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<CAPTION>
FOR THE SIX MONTHS
ENDED JUNE 30, FOR THE YEAR ENDED DECEMBER 31,
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2000 1999 1999 1998 1997 1996 1995
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Earnings
Pre-tax income (loss) from continuing operations
before preferred dividends of subsidiary $ 45 $ (143) $ (298) $ (45) $ 66 $ 44 $ 53
Minority interest in consolidated subsidiaries 49 8 36 12 - - -
Income from equity investees (38) (49) (95) (84) (53) - -
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Pre-tax income (loss) from continuing
operations before minority interest
in consolidated subsidiaries and income
from equity investees 464 (184) (357) (523) 611 444 532
Fixed charges 334 249 552 453 381 269 263
Distributed income of equity investees 28 7 43 24 19 - -
Capitalized interest (13) (8) (23) (9) (9) (7) (8)
Preferred stock dividend requirements of
consolidated subsidiaries (17) (19) (34) (40) (38) (2) -
Fixed charges of minority interest in consolida (49) (8) (36) (12) - - -
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Totals earnings available for fixed charges $ 747 $ 37 $ 145 $(107) $ 964 $ 704 $ 787
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Fixed charges
Interest and debt expense $ 26 $ 216 $ 47 $ 38 $ 33 $ 25 $ 25
Interest component of rent 7 6 12 13 11 12 11
Preferred stock dividend requirement 17 19 34 40 38 2 -
Minority interest in consolidated subsidiaries 49 8 36 12 - - -
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Total fixed charges $ 334 $ 249 $ 552 $ 453 $ 381 $ 269 $ 263
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Ratio of earnings to fixed charges (1) 2.24 -(2) -(2) -(2) 2.53 2.62 2.99
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(1) The ratio of earnings to combined fixed charges and preferred and preference stock dividend
requirements for the periods presented is the same as the ratio of earnings to fixed charges since
El Paso Energy has no outstanding preferred stock or preference stock and, therefore, no dividend
requirements.
(2) Earnings were inadequate to cover fixed charges by $212 million for the six months ended
June 30, 1999, and $407 million and $560 million for the years ended 1999 and 1998, respectively.
For purposes of calculating these ratios: (i) "fixed charges" represent interest cost (exclusive of
interest on rate refunds), amortization of debt costs, the estimated portion of rental expense
representing the interest factor, pretax preferred stock dividend requirements of consolidated
subsidiaries, and minority interests in consolidated subsidiaries; and (ii) "earnings" represent the
aggregate of pre-tax income (loss) from continuing operations before adjustment for minority
interest in consolidated subsidiaries and income from equity investees, fixed charges, and
distributed income of equity investees, less capitalized interest, minority interest in consolidated
subsidiaries, and preferred stock dividend requirement of consolidated subsidiaries.
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