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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)
SIX MONTHS ENDED
JUNE 30,
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2001 2000 2000 1999 1998 1997 1996
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EARNINGS
Pretax income (loss) from
continuing operations(1) $ 808,887 $ 438,922 $1,203,681 $ 344,573 $ (187,563) $ 258,640 $ 200,195
Add: Fixed charges excluding
capitalized interest 71,198 59,442 116,190 90,398 78,728 78,531 68,091
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Adjusted Earnings $ 880,085 $ 498,364 $1,319,871 $ 434,971 $ (108,835) $ 337,171 $ 268,286
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FIXED CHARGES AND PREFERRED STOCK
DIVIDENDS
Interest expense including
capitalized interest(2) $ 93,966 $ 83,183 $ 168,121 $ 132,986 $ 119,703 $ 105,148 $ 89,829
Amortization of debt expense 1,034 1,732 2,726 4,854 4,496 6,438 5,118
Interest component of lease
rental expenditures(3) 5,066 3,368 7,343 5,789 3,808 3,438 3,856
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Fixed charges 100,066 88,283 178,190 143,629 128,007 115,024 98,803
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Preferred stock dividend
requirements(4) 16,222 17,127 33,386 24,788 2,905 -- --
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Combined fixed charges and
preferred stock dividends $ 116,288 $ 105,410 $ 211,576 $ 168,417 $ 130,912 $ 115,024 $ 98,803
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Ratio of earnings to fixed charges 8.80 5.65 7.41 3.03 --(5) 2.93 2.72
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Ratio of earnings to combined fixed
charges and preferred stock
dividends 7.57 4.73 6.24 2.58 --(5) 2.93 2.72
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(1) Undistributed income of less-than-50 percent-owned affiliates is excluded.
(2) Apache guaranteed and is contingently liable for certain debt. Fixed
charges, relating to the debt for which Apache was 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 percent to 34 percent 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.