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, 1998 AND FOR EACH OF THE FIVE YEARS ENDED DECEMBER 31, 1997 -------------------------------------------------- (Millions of dollars) For the Six Years Ended December 31, Months Ended ------------------------------------------- June 30, 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..................... $ 919 $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................ (4) (11) (4) 1 (1) (8) Minority interest in net income............................ 30 68 72 54 44 17 Previously capitalized interest charged to income during the period................................ 9 25 27 33 29 33 ------ ------ ------ ------ ------ ------ Total earnings..................................... 954 3,596 3,545 1,289 1,481 1,434 ------ ------ ------ ------ ------ ------ Fixed charges: Items charged to income: Interest charges...................................... 319 528 551 614 594 546 Interest factor attributable to operating lease rentals.................................... 45 112 129 110 118 91 Preferred stock dividends of subsidiaries guaranteed by Texaco Inc......................... 17 33 35 36 31 4 ------ ------ ------ ------ ------ ------ Total items charged to income...................... 381 673 715 760 743 641 Interest capitalized.................................... 12 27 16 28 21 57 Interest on ESOP debt guaranteed by Texaco Inc.......... 2 7 10 14 14 14 ------ ------ ------ ------ ------ ------ Total fixed charges................................ 395 707 741 802 778 712 ------ ------ ------ ------ ------ ------ Earnings available for payment of fixed charges............ $1,335 $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............................. 3.38 6.04 5.75 2.55 2.86 2.91 ====== ====== ====== ====== ====== ====== <FN> (a) Excludes discontinued operations. </FN>