EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES OF TEXACO ON A TOTAL ENTERPRISE BASIS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND FOR EACH OF THE FIVE YEARS ENDED DECEMBER 31, 1997 -------------------------------------------------- (Millions of dollars) For the Three Years Ended December 31, Months Ended ---------------------------------------------- March 31, 1998 1997 1996 1995 1994(a) 1993(a) -------------- ---- ---- ---- ------- ------- Income from continuing operations, before provision or benefit for income taxes and cumulative effect of accounting changes effective 1-1-95..................... $ 458 $3,514 $3,450 $1,201 $1,409 $1,392 Dividends from less than 50% owned companies more or (less) than equity in net income................ (2) (11) (4) 1 (1) (8) Minority interest in net income............................ 15 68 72 54 44 17 Previously capitalized interest charged to income during the period................................ 6 25 27 33 29 33 ------- ------ ------ ------ ------ ------ Total earnings..................................... 477 3,596 3,545 1,289 1,481 1,434 ------- ------ ------ ------ ------ ------ Fixed charges Items charged to income: Interest charges...................................... 162 528 551 614 594 546 Interest factor attributable to operating lease rentals.................................... 23 112 129 110 118 91 Preferred stock dividends of subsidiaries guaranteed by Texaco Inc......................... 9 33 35 36 31 4 ------- ------ ------ ------ ------ ------ Total items charged to income...................... 194 673 715 760 743 641 Interest capitalized.................................... 6 27 16 28 21 57 Interest on ESOP debt guaranteed by Texaco Inc.......... 1 7 10 14 14 14 ------- ------ ------ ------ ------ ------ Total fixed charges................................ 201 707 741 802 778 712 ------- ------ ------ ------ ------ ------ Earnings available for payment of fixed charges............ $ 671 $4,269 $4,260 $2,049 $2,224 $2,075 (Total earnings + Total items charged to income) ======= ====== ====== ====== ====== ====== Ratio of earnings to fixed charges of Texaco on a total enterprise basis............................. 3.34 6.04 5.75 2.55 2.86 2.91 ======= ====== ====== ====== ====== ====== <FN> (a) Excludes discontinued operations. </FN>