EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES OF TEXACO ON A TOTAL ENTERPRISE BASIS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 1994 AND FOR EACH OF THE FIVE YEARS ENDED DECEMBER 31, 1993 (a) ------------------------------------------------------ (Millions of dollars) For the Six Years Ended December 31, Months Ended --------------------------------------------------- June 30, 1994 1993 1992 1991 1990 1989(b) ------------- ---- ---- ---- ---- ---- Income from continuing operations, before provision or benefit for income taxes and cumulative effect of accounting changes effective 1-1-92 $ 540 $1,392 $1,707 $1,744 $2,448 $2,888 Dividends from less than 50% owned companies more or (less) than equity in net income (6) (8) (9) 5 (7) (12) Minority interest in net income 18 17 18 16 12 2 Previously capitalized interest charged to income during the period 15 33 30 23 16 14 ------ ------ ------ ------ ------ ------ Total earnings 567 1,434 1,746 1,788 2,469 2,892 ------ ------ ------ ------ ------ ------ Fixed charges: Items charged to income: Interest charges 291 546 551 644 676 798 Interest factor attributable to operating lease rentals 42 91 94 76 58 40 Preferred stock dividends of subsidiaries guaranteed by Texaco Inc. 14 4 - - - - ------ ------ ------ ------ ------ ------ Total items charged to income 347 641 645 720 734 838 Interest capitalized 9 57 109 80 50 54 Interest on ESOP debt guaranteed by Texaco Inc. 6 14 18 26 38 42 ------ ------ ------ ------ ------ ------ Total fixed charges 362 712 772 826 822 934 ------ ------ ------ ------ ------ ------ Earnings available for payment of fixed charges $ 914 $2,075 $2,391 $2,508 $3,203 $3,730 (Total earnings + Total items charged to income) ====== ====== ====== ====== ====== ====== Ratio of earnings to fixed charges of Texaco on a total enterprise basis 2.52 2.91 3.10 3.04 3.90 3.99 ====== ====== ====== ====== ====== ====== <FN> (a) Excludes discontinued chemical operations. (b) Excluding the gains from the sale of Texaco Canada Inc. and the sale of a 20% stock interest in a subsidiary, as well as the 1989 restructuring charges, the ratio of earnings to fixed charges on a total enterprise basis approximated 2.14.