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EXHIBIT 12
Conoco Inc.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
Six Months
Ended June 30 Year Ended December 31
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1999 1998 1997 1996 1995 1994
-------- -------- -------- -------- -------- --------
Net income .............................................. $ 197 $ 450 $ 1,097 $ 863 $ 575 $ 422
Provision for income Taxes .............................. 97 244 1,010 1,038 774 551
Equity in Earnings of Investees ......................... (33) (22) (40) 25 (22) (25)
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Pre-tax income before Adjustment for Minority Interests
in Consolidated Subsidiaries or Income or Loss from
Equity Investees ..................................... 261 672 2,067 1,926 1,327 948
Fixed Charges (see below) ............................... 179 337 174 188 210 160
Amortization of Capitalized Interest .................... 22 40 46 53 53 49
Distributed Income in Equity Investees .................. 22 105 58 85 42 75
Capitalized Interest .................................... (3) (72) (94) (75) (95) (59)
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Total Adjusted Earnings Available for Payment of Fixed
Charges (a)(b) ....................................... $ 481 $ 1,082 $ 2,251 $ 2,177 $ 1,537 $ 1,173
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Ratio of Earnings to Fixed Charges ...................... 2.7 3.2 12.9 11.6 7.3 7.3
Fixed Charges:
Interest and Debt Expense - Borrowings ................. $ 150 $ 199 $ 36 $ 74 $ 74 $ 63
Capitalized Interest .................................... 3 72 94 75 95 59
Rental Expense Representative of Interest Factor ........ 26 66 44 39 41 38
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Total Fixed Charges ..................................... $ 179 $ 337 $ 174 $ 188 $ 210 $ 160
======== ======== ======== ======== ======== ========
Ratio of Earnings to Fixed Charges Excluding Special
Items:
Earnings From Above ..................................... $ 481 $ 1,082 $ 2,251 $ 2,177 $ 1,537 $ 1,173
Special Items (pre-tax) (c) ............................. 0 454 (91) (22) 71 113
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Earnings Adjusted For Special Items ..................... $ 481 $ 1,536 $ 2,160 $ 2,155 $ 1,608 $ 1,286
======== ======== ======== ======== ======== ========
Fixed Charges From Above ................................ $ 179 $ 337 $ 174 $ 188 $ 210 $ 160
======== ======== ======== ======== ======== ========
Ratio of Earnings Adjusted For Special Items to
Fixed Charges ........................................ 2.7 4.6 12.4 11.5 7.7 8.0
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a) No pre-tax losses of equity investees for which charges arising from
guarantees are included in fixed charges.
b) No fixed charges in subsidiaries with minority interests.
c) Special items include material non-recurring items and generally
consist of asset sales, property impairments, tax rate changes,
employee separation costs, inventory write-downs, environmental
insurance litigation recoveries, litigation charges and in 1998, stock
option provision. See 1998 Form 10-K as amended for prior years.