1
EXHIBIT 12.1
APACHE CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
---------------------
2000 1999 1999 1998
--------- --------- --------- ---------
EARNINGS
Pretax income (loss) from continuing operations (1) $ 201,627 $ (1,246) $ 344,573 $(187,563)
Add: Fixed charges excluding capitalized interest 30,398 20,942 90,398 78,728
--------- --------- --------- ---------
Adjusted Earnings $ 232,025 $ 19,696 $ 434,971 $(108,835)
========= ========= ========= =========
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest (2) $ 41,568 $ 31,448 $ 132,986 $ 119,703
Amortization of debt expense 1,279 1,114 4,854 4,496
Interest component of lease rental expenditures (3) 1,568 1,296 5,789 3,808
--------- --------- --------- ---------
Fixed charges 44,415 33,858 143,629 128,007
--------- --------- --------- ---------
Preferred stock requirements (4) 9,126 2,419 24,788 2,905
--------- --------- --------- ---------
Combined fixed charges and preferred stock dividends $ 53,541 $ 36,277 $ 168,417 $ 130,912
========= ========= ========= =========
Ratio of earnings to fixed charges 5.22 - (6) 3.03 - (5)
========= ========= ========= =========
Ratio of earnings to combined fixed charges and
preferred stock dividends 4.33 - (6) 2.58 - (5)
========= ========= ========= =========
1997 1996 1995
--------- --------- ---------
EARNINGS
Pretax income (loss) from continuing operations (1) $ 258,640 $ 200,195 $ 33,143
Add: Fixed charges excluding capitalized interest 78,531 68,091 77,220
--------- --------- ---------
Adjusted Earnings $ 337,171 $ 268,286 $ 110,363
========= ========= =========
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest (2) $ 105,148 $ 89,829 $ 88,057
Amortization of debt expense 6,438 5,118 4,665
Interest component of lease rental expenditures (3) 3,438 3,856 3,539
--------- --------- ---------
Fixed charges 115,024 98,803 96,261
--------- --------- ---------
Preferred stock requirements (4) -- -- --
--------- --------- ---------
Combined fixed charges and preferred stock dividends $ 115,024 $ 98,803 $ 96,261
========= ========= =========
Ratio of earnings to fixed charges 2.93 2.72 1.15
========= ========= =========
Ratio of earnings to combined fixed charges and
preferred stock dividends 2.93 2.72 1.15
========= ========= =========
- ------------------
(1) Undistributed income of less-than-50%-owned affiliates is excluded.
(2) Apache has guaranteed and is contingently liable for certain debt. Fixed
charges, relating to the debt for which Apache is contingently liable, have
not been included in the fixed charges for any of the periods shown above.
(3) Represents the portion of rental expense assumed to be attributable to
interest factors of related rental obligations determined at interest rates
appropriate for the period during which the rental obligations were
incurred. Approximately 32% to 34% applies for all periods presented.
(4) Represents the amount of pre-tax earnings that would be required to cover
preferred stock dividends.
(5) Earnings were inadequate to cover fixed charges and combined fixed charges
and preferred stock dividends by $236.8 million and $239.7 million,
respectively, due to the $243.2 million write-down of the carrying value of
United States oil and gas properties.
(6) Earnings were inadequate to cover fixed charges and combined fixed charges
and preferred stock dividends by $14.2 million and $16.6 million,
respectively, as a result of low oil and gas prices.