EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES OF TEXACO ON A TOTAL ENTERPRISE BASIS (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND FOR EACH OF THE FIVE YEARS ENDED DECEMBER 31, 1998 -------------------------------------------------- (Millions of dollars) Years Ended December 31, For the Nine ------------------------ Months Ended September 30, 1999 1998 1997 1996 1995 1994 ------------------ ---- ---- ---- ---- ---- Income from continuing operations, before provision or benefit for income taxes and cumulative effect of accounting changes effective 1-1-98 and 1-1-95............................. $1,488 $ 892 $3,514 $3,450 $1,201 $1,409 Dividends from less than 50% owned companies more or (less) than equity in net income................ 70 -- (11) (4) 1 (1) Minority interest in net income............................ 62 56 68 72 54 44 Previously capitalized interest charged to income during the period................................ 11 22 25 27 33 29 ------ ------ ------ ------ ------ ------ Total earnings..................................... 1,631 970 3,596 3,545 1,289 1,481 ------ ------ ------ ------ ------ ------ Fixed charges Items charged to income: Interest charges...................................... 432 664 528 551 614 594 Interest factor attributable to operating lease rentals.................................... 66 120 112 129 110 118 Preferred stock dividends of subsidiaries guaranteed by Texaco Inc......................... 31 33 33 35 36 31 ------ ------ ------ ------ ------ ------ Total items charged to income...................... 529 817 673 715 760 743 Interest capitalized.................................... 21 26 27 16 28 21 Interest on ESOP debt guaranteed by Texaco Inc.......... - 3 7 10 14 14 ------ ------ ------ ------ ------ ------ Total fixed charges................................ 550 846 707 741 802 778 ------ ------ ------ ------ ------ ------ Earnings available for payment of fixed charges............ $2,160 $1,787 $4,269 $4,260 $2,049 $2,224 (Total earnings + Total items charged to income) ====== ====== ====== ====== ====== ====== Ratio of earnings to fixed charges of Texaco on a total enterprise basis............................. 3.93 2.11 6.04 5.75 2.55 2.86 ====== ====== ====== ====== ====== ======