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EXHIBIT 12
CONOCO INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
SEPTEMBER 30, YEAR ENDED DECEMBER 31,
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2000 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C>
Net income ........................................ $ 1,352 $ 744 $ 450 $ 1,097 $ 863 $ 575
Provision for income taxes ........................ 1,099 473 244 1,010 1,038 774
Equity in earnings of affiliates .................. (244) (150) (22) (40) 25 (22)
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Pretax income before adjustment for minority
interests in consolidated subsidiaries or
income or loss from equity affiliates .......... 2,207 1,067 672 2,067 1,926 1,327
Fixed charges (see below) ......................... 316 412 337 174 188 210
Amortization of capitalized interest .............. 31 46 40 46 53 53
Distributed income in equity affiliates ........... 91 77 105 58 85 42
Capitalized interest .............................. (17) (6) (72) (94) (75) (95)
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Total adjusted earnings available for
payment of fixed charges(a)............... $ 2,628 $ 1,596 $ 1,082 $ 2,251 $ 2,177 $ 1,537
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Ratio of earnings to fixed charges ................ 8.3 3.9 3.2 12.9 11.6 7.3
Fixed charges
Interest and debt expense-borrowings ......... $ 250 $ 311 $ 199 $ 36 $ 74 $ 74
Capitalized interest ......................... 17 6 72 94 75 95
Rental expense representative of interest
factor ...................................... 49 95 66 44 39 41
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Total fixed charges(b) ..................... $ 316 $ 412 $ 337 $ 174 $ 188 $ 210
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Ratio of earnings to fixed charges
excluding special items
Earnings from above .......................... $ 2,628 $ 1,596 $ 1,082 $ 2,251 $ 2,177 $ 1,537
Special items (pretax)(c) .................... 20 60 454 (91) (22) 71
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Earnings adjusted for special items ............... $ 2,648 $ 1,656 $ 1,536 $ 2,160 $ 2,155 $ 1,608
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Fixed charges from above .......................... $ 316 $ 412 $ 337 $ 174 $ 188 $ 210
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Ratio of earnings adjusted for special items to
fixed charges .................................. 8.4 4.0 4.6 12.4 11.5 7.7
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a) Equity affiliate pretax losses, where incurred, include no guaranteed
payments.
b) There were $1 of fixed charges in subsidiaries with minority interests
in the nine months ended September 30, 2000, and none in prior years.
c) Includes special items as reported in third quarter 2000 Form 10-Q. See
Conoco's 1999 Form 10-K for discussion of prior years' special items.
