EXHIBIT 12
PENNZOIL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the three months ended
March 31,
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1998 1997
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(Dollar amounts expressed in thousands)
Net income $ 9,658 $ 57,551
Income tax provision
Federal and foreign 2,320 29,197
State (20) 3,440
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Total income tax provision 2,300 32,637
Interest charges 48,346 42,730
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Income before income tax provision and interest charges $ 60,304 $ 132,918
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Fixed charges $ 50,377 $ 49,355
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Ratio of earnings to fixed charges 1.20 2.69
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DETAIL OF INTEREST AND FIXED CHARGES
For the three months ended
March 31,
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1998 1997
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(Expressed in thousands)
Interest charges per Consolidated Statement of Income
which includes amortization of debt discount, expense and premium $ 43,911 $ 43,743
Add: portion of rental expense representative of interest factor <F1> 6,466 5,612
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Total fixed charges $ 50,377 $ 49,355
Less: interest capitalized per Consolidated Statement of Income 2,031 6,625
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Total interest charges $ 48,346 $ 42,730
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<FN>
<F1> Interest factor based on management's estimates and approximates one-third of rental expense.
</FN>