EXHIBIT 12
PENNZOIL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the six months ended
June 30,
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1995 1994
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(Dollar amounts expressed in thousands)
Income (loss) before cumulative effect of change
in accounting principle $ (2,047) $ 27,548
Income tax provision (benefit)
Federal and foreign (3,588) 11,819
State 1,059 3,262
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Total income tax provision (benefit) (2,529) 15,081
Interest charges 108,929 96,720
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Income before income tax provision (benefit) and interest charges $ 104,353 $ 139,349
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Fixed charges $ 111,704 $ 101,214
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Ratio of earnings to fixed charges 0.93 1.38
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Amount by which fixed charges exceed earnings $ 7,351 $ -
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DETAIL OF INTEREST AND FIXED CHARGES
For the six months ended
June 30,
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1995 1994
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(Expressed in thousands)
Interest charges per Consolidated Statement of Income
which includes amortization of debt discount, expense and premium $ 99,021 $ 89,664
Add: portion of rental expense representative of interest factor <F1> 12,683 11,550
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Total fixed charges $ 111,704 $ 101,214
Less: interest capitalized per Consolidated Statement of Income 2,775 4,494
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Total interest charges $ 108,929 $ 96,720
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<FN>
<F1> Interest factor based on management's estimates and approximates one-third of rental expense.
</FN>