EXHIBIT 12 DUKE CAPITAL CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS) Nine Months Ended Twelve Months Ended --------------------- -------------------------------------------- Sept 30, Sept 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 1998 1997a 1997a 1996a 1995a 1994a 1993a ------- -------- -------- -------- -------- -------- -------- Earnings Before Income Taxes.................. $ 577.9 $ 487.0 $ 636.9 $ 651.1 $ 572.3 $ 448.5 $ 321.6 Fixed Charges........... 195.4 170.9 234.7 253.6 264.2 263.2 298.5 ------- -------- ------- ------- ------- ------- ------- Total............... $ 773.3 $ 657.9 $ 871.6 $ 904.7 $ 836.5 $ 711.7 $ 620.1 ------- -------- ======= ======= ======= ======= ======= Fixed Charges Interest on debt....... $ 189.6 $ 163.6 $ 224.3 $ 237.5 $ 252.9 $ 253.2 $ 289.2 Interest component of rentals............... 5.8 7.6 10.4 16.1 11.3 10.0 9.3 ------- -------- ------- ------- ------- ------- ------- Fixed Charges....... $ 195.4 $ 170.9 $ 234.7 $ 253.6 $ 264.2 $ 263.2 $ 298.5 ------- -------- ======= ======= ======= ======= ======= Ratio of Earnings to Fixed Charges.......... 4.0 3.8 3.7 3.6 3.2 2.7 2.1 - ---------------------- a Financial information reflects accounting for the combination with PanEnergy on June 30, 1997 similar to a pooling of interests. As a result, the financial information gives effect to the combination as if it had occurred as of January 1, 1993.