<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 4, 1998
Date of earliest event reported: May 4, 1998
THE COASTAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 74-1734212
(State of incorporation (I.R.S. Employer
or organization) Identification No.)
COASTAL TOWER
NINE GREENWAY PLAZA
HOUSTON, TEXAS 77046-0995
(Address of principal executive offices) (Zip Code)
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhbits.
(12) Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE COASTAL CORPORATION
(Registrant)
Date: May 4, 1998 By: /s/ COBY C. HESSE
--------------------------------------
Coby C. Hesse
Executive Vice President
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EXHIBIT 12
THE COASTAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1993 1994 1995 1996 1997
-------- ------- ------- -------- -------
(DOLLARS IN MILLIONS)
<S> <C> <C> <C> <C> <C>
EARNINGS:
Pretax earnings from continuing operations............ $202.4 $324.9 $297.2 $ 645.1 $509.1
Fixed charges, excluding capitalized interest--
see below........................................... 481.8 433.9 441.9 399.2 348.4
------ ------ ------ -------- ------
Earnings.............................................. $684.2 $758.8 $739.1 $1,044.3 $857.5
====== ====== ====== ======== ======
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS:
Interest expense...................................... $442.5 $407.8 $415.4 $ 368.3 $307.5
Interest factor, included in rentals.................. 32.7 24.0 26.5 30.9 31.7
Dividends on preferred stock of subsidiaries.......... 6.6 2.1 -- -- 9.2
------ ------ ------ -------- ------
Fixed charges, excluding capitalized interest......... 481.8 433.9 441.9 399.2 348.4
Capitalized interest.................................. 8.4 8.3 5.9 8.0 15.5
Preferred stock dividends............................. 18.3 24.0 20.2 22.2 22.6
------ ------ ------ -------- ------
Fixed charges and preferred stock dividends........... $508.5 $466.2 $468.0 $ 429.4 $386.5
====== ====== ====== ======== ======
Ratio of Earnings to Combined Fixed Charges and Preferred
Stock Dividends......................................... 1.35x 1.63x 1.58x 2.43x 2.22x
====== ====== ====== ======== ======
</TABLE>
