EXHIBIT 12.3 UNION OIL COMPANY OF CALIFORNIA AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Six Months Ended June 30 ------------------ Dollars in millions 1995 1994 - ----------------------------------------------------------------------------- Earnings before cumulative effect of accounting change $ 152 $ 122 accounting change Provision for income taxes 104 108 --- --- Earnings subtotal 256 230 Fixed charges included in earnings: Interest expense 146 141 Interest portion of rentals 25 28 --- --- Subtotal 171 169 Earnings available before fixed charges $427 $399 ==== ==== Fixed charges: Fixed charges included in earnings $ 171 $ 169 Capitalized interest 16 18 ----- ----- Total fixed charges $ 187 $ 187 ===== ===== Ratio of earnings to fixed charges 2.3 2.1