EXHIBIT 12 PENNZOIL COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the three months ended March 31, ---------------------------------- 1996 1995 ------------- ------------- (Dollar amounts expressed in thousands) Income from continuing operations before extraordinary items and cumulative effect of change in accounting principle $ 15,769 $ 2,743 Income tax provision (benefit) Federal and foreign 6,898 (1,325) State 802 740 ------------- ------------- Total income tax provision (benefit) 7,700 (585) Interest charges 53,789 54,494 ------------- ------------- Income before income tax provision (benefit) and interest charges $ 77,258 $ 56,652 ============= ============= Fixed charges $ 55,241 $ 55,557 ============= ============= Ratio of earnings to fixed charges 1.40 1.02 ============= ============= DETAIL OF INTEREST AND FIXED CHARGES For the three months ended March 31, ---------------------------------- 1996 1995 ------------- ------------- (Expressed in thousands) Interest charges per Consolidated Statement of Income which includes amortization of debt discount, expense and premium $ 49,015 $ 49,542 Add: portion of rental expense representative of interest factor <F1> 6,226 6,015 ------------- ------------- Total fixed charges $ 55,241 $ 55,557 Less: interest capitalized per Consolidated Statement of Income 1,452 1,063 ------------- ------------- Total interest charges $ 53,789 $ 54,494 ============= ============= <FN> <F1> Interest factor based on management's estimates and approximates one-third of rental expense. </FN>