Exhibit 12 PHILLIPS PETROLEUM COMPANY AND CONSOLIDATED SUBSIDIARIES TOTAL ENTERPRISE Computation of Ratio of Earnings to Fixed Charges Millions of Dollars ------------------------ Nine Months Ended September 30 ------------------------ 1999 1998 ------------------------ (Unaudited) Earnings Available for Fixed Charges Income before income taxes $ 697 879 Distributions less than equity in earnings of less-than-fifty-percent-owned companies (3) (5) Fixed charges, excluding capitalized interest* 309 230 - ---------------------------------------------------------------------------- $1,003 1,104 ============================================================================ Fixed Charges Interest and expense on indebtedness, excluding capitalized interest $ 222 149 Capitalized interest 35 38 Preferred dividend requirements of capital trusts 40 40 One-third of rental expense, net of subleasing income, for operating leases 34 29 - ---------------------------------------------------------------------------- $ 331 256 ============================================================================ Ratio of Earnings to Fixed Charges 3.0 4.3 - ---------------------------------------------------------------------------- *Includes amortization of capitalized interest totaling approximately $13 million and $12 million in 1999 and 1998, respectively. 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 and 1988, respectively, the company guaranteed a $400 million bank loan and $250 million of notes payable for the Long-Term Stock Savings Plan (LTSSP), an employee benefit plan. In 1994, the notes payable were refinanced with a $131 million term loan, which was repaid in June 1998. The $400 million loan was amended in 1994, 1995, and again in 1997. Consolidated interest expense included a minimal amount of interest related to LTSSP borrowings for the first nine months of 1999 and 1998.