Exhibit 12 PHILLIPS PETROLEUM COMPANY AND CONSOLIDATED SUBSIDIARIES TOTAL ENTERPRISE Computation of Ratio of Earnings to Fixed Charges Millions of Dollars -------------------------------------- Years Ended December 31 -------------------------------------- 2000 1999 1998 1997 1996 -------------------------------------- (Unaudited) Earnings Available for Fixed Charges Income before income taxes $3,769 1,185 421 1,900 2,172 Distributions less than equity in earnings of fifty-percent-or-less- owned companies (30) (7) (19) (54) 72 Fixed charges, excluding capitalized interest* 481 396 314 333 309 - ------------------------------------------------------------------- $4,220 1,574 716 2,179 2,553 =================================================================== Fixed Charges Interest and expense on indebtedness, excluding capitalized interest $ 369 279 200 198 217 Capitalized interest 174 49 48 46 31 Preferred dividend requirements of subsidiary and capital trusts 53 53 53 113 68 Interest portion of rental expense 42 47 45 39 36 - ------------------------------------------------------------------- $ 638 428 346 396 352 =================================================================== Ratio of Earnings to Fixed Charges 6.6 3.7 2.1 5.5 7.3 - ------------------------------------------------------------------- *Includes amortization of capitalized interest totaling approximately $17 million each in 2000 and 1999, $16 million in 1998, $14 million in 1997, and $10 million in 1996. Earnings available for fixed charges include, if any, the company's equity in losses of companies owned less than fifty percent and having debt for which the company is contingently liable. Fixed charges include the company's proportionate share, if any, of interest relating to the contingent debt. In 1990, the company guaranteed a $400 million bank loan for the Long-Term Stock Savings Plan (LTSSP), an employee benefit plan. Consolidated interest expense includes interest attributable to the LTSSP borrowings of $4 million in 2000. Interest attributable to the LTSSP borrowings was minimal in 1999, 1998, 1997 and 1996.