EXHIBIT 12 PENNZOIL COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the six months ended June 30, ---------------------------------- 1994 1993 ------------- ------------- (Dollar amounts expressed in thousands) Income from continuing operations $ 27,548 $ 55,764 Income taxes Federal and foreign 11,819 20,250 State 3,262 3,804 ------------- ------------- Total income taxes 15,081 24,054 Interest charges 96,720 105,816 ------------- ------------- Income before income taxes and interest charges $ 139,349 $ 185,634 ============= ============= Fixed charges $ 101,214 $ 110,400 ============= ============= Ratio of earnings to fixed charges 1.38 1.68 ============= ============= DETAIL OF INTEREST AND FIXED CHARGES For the six months ended June 30, ---------------------------------- 1994 1993 ------------- ------------- (Expressed in thousands) Interest charges per Consolidated Statement of Income which includes amortization of debt discount, expense and premium $ 89,664 $ 100,576 Add portion of rental expense representative of interest factor <F1> 11,550 9,824 ------------- ------------- Total fixed charges $ 101,214 $ 110,400 Less interest capitalized per Consolidated Statement of Income 4,494 4,584 ------------- ------------- Total interest charges $ 96,720 $ 105,816 ============= ============= <FN> <F1> Interest factor based on management's estimates and approximates one-third of rental expense.