================================================================================
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: February 5, 1999
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)
================================================================================
<PAGE>
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
(12) Computation of Ratio of Earnings to Fixed Charges.
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: February 5, 1999 By: /S/ COBY C. HESSE
---------------------------------------
Coby C. Hesse
Executive Vice President
Exhibit 12
THE COASTAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
Nine Months Ended
Year Ended December 31, September 30,
-------------------------------------------------- --------------------
1993 1994 1995 1996 1997 1997 1998
-------- -------- -------- -------- -------- -------- --------
(Dollars in Millions)
<S> <C> <C> <C> <C> <C> <C> <C>
EARNINGS:
Pretax earnings from continuing
operations........................ $ 202.4 $ 324.9 $ 297.2 $ 645.1 $ 509.1 $ 360.1 $ 418.7
Fixed charges, excluding capitalized
interest - see below.............. 481.8 433.9 441.9 399.2 348.4 261.1 262.3
-------- -------- -------- -------- -------- -------- --------
Earnings......................... $ 684.2 $ 758.8 $ 739.1 $1,044.3 $ 857.5 $ 621.2 $ 681.0
======== ======== ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense.................... $ 442.5 $ 407.8 $ 415.4 $ 368.3 $ 307.5 $ 230.3 $ 221.2
Interest factor, included in rentals 32.7 24.0 26.5 30.9 31.7 23.5 21.1
Dividends on preferred stock of
subsidiaries...................... 6.6 2.1 - - 9.2 7.3 20.0
-------- -------- -------- -------- -------- -------- --------
Fixed charges, excluding capitalized
interest.......................... 481.8 433.9 441.9 399.2 348.4 261.1 262.3
Capitalized interest................ 8.4 8.3 5.9 8.0 15.5 7.1 18.5
-------- -------- -------- -------- -------- -------- --------
Fixed charges....................... $ 490.2 $ 442.2 $ 447.8 $ 407.2 $ 363.9 $ 268.2 $ 280.8
======== ======== ======== ======== ======== ======== ========
Ratio of Earnings to Fixed Charges.... 1.40x 1.72x $ 1.65x 2.56x 2.36x 2.32x 2.43x
======= ======= ======= ======= ======= ======= =======
</TABLE>
