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EXHIBIT 11
PENNZOIL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31,
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1995 1994 1993 1992 1991
--------- --------- -------- -------- --------
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)
Income (loss) from continuing
operations.......................... $(305,142) $(283,739) $160,236 $ 17,410 $ 40,098
-------- --------- -------- -------- --------
Income tax provision (benefit)
Federal and foreign................. (164,125) (226,388) 52,737 (22,193) (23,988)
State............................... (8,408) 5,033 6,468 3,410 3,928
-------- --------- -------- -------- --------
Total income tax provision
(benefit)................. (172,533) (221,355) 59,205 (18,783) (20,060)
Interest charges...................... 217,689 497,799 199,410 243,351 260,069
-------- --------- -------- -------- --------
Income (loss) before income tax
provision (benefit) and interest
charges............................. $(259,986) $ (7,295) $418,851 $241,978 $280,107
======== ========= ======== ======== ========
Fixed charges......................... $ 221,920 $ 506,826 $210,830 $252,082 $270,516
======== ========= ======== ======== ========
Ratio of earnings to fixed charges.... -- -- 1.99 -- 1.04
======== ========= ======== ======== ========
Amount by which fixed charges exceed
earnings............................ $ 481,906 $ 514,121 $ -- $ 10,104 $ --
======== ========= ======== ======== ========
DETAIL OF INTEREST AND FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)
Interest charges per consolidated
statement of income which includes
amortization of debt discount, expense
and premium........................... $198,579 $485,668 $190,968 $233,360 $253,943
Add portion of rental expense
representative of interest
factor(1)............................. 23,341 21,158 19,862 18,722 16,573
-------- -------- -------- -------- --------
Total fixed charges........... 221,920 506,826 210,830 252,082 270,516
Less interest capitalized per
consolidated statement of income...... 4,231 9,027 11,420 8,731 10,447
-------- -------- -------- -------- --------
Total interest charges........ $217,689 $497,799 $199,410 $243,351 $260,069
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(1) Interest factor based on management's estimates and approximates one-third
of rental expense.