TEXACO

              9/13/93 52-Wk-Rng FY/Q  EPS93  EPS94 PE94 NxtQtr LyQtr
Texaco Inc.     65.38   66-57   12/3   4.45   5.15 12.7  **.** **.** TX

1.  Analysts continue to rate Texaco as a trading buy with estimates at $4.45
and $5.15 for 1993 and 1994, respectively.

2.  Texaco yesterday afternoon announced the sale of its chemical business,
with some exceptions, to Huntsman Financial Corporation (an affiliate of the
Jon Huntsman Group of Companies) for $1,060 billion.  The transaction includes
working capital, and Texaco indicated it would not book a gain or loss on the
transaction, which is to be completed by year-end.  The proceeds of the sale
will be effectively redeployed within Texaco and are ultimately destined for
reinvestment in the company's core business lines or to reduce debt pending
investment opportunities.

3.  Texaco had never built up a critical mass in its petrochemicals business;
operations are currently at a loss (chemicals lost $30 million in 1992 and have
been running at a loss so far in 1993).  Peak cycle earnings ran over $200
million per year in 1988-1989 but are clearly not likely to recur during the
foreseeable future.  Cash flow in 1992 (depreciation and net losses) was just
over $30 million.  In all, it appears to us that Texaco received a good price
for its assets.  It was a non-core business for the company, and the proceeds
can be better utilized to build up its oil and gas operations.

4.  As mentioned, there will not be a one-time gain or loss on the sale.
Analysts estimate a modestly positive impact on 1994 earnings and cash flow.
However, they are not changing their 1994 estimate at this time, reflecting the
unsettled nature of world oil markets and their less than perfect ability to
nail down all the other variables affecting Texaco's earnings at this time.