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)
<Table>
<Caption>
THREE MONTHS ENDED
MARCH 31,
------------------------
2002 2001 2001 2000
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EARNINGS
Pretax income (loss) from continuing operations before preferred
interests of subsidiaries .............................................. $ 126,244 $ 461,585 $ 1,206,863 $ 1,203,681
Add: Fixed charges excluding capitalized interest and preferred
dividend requirements of consolidated subsidiaries ..................... 30,471 32,424 134,484 116,190
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Adjusted Earnings ........................................................ $ 156,715 $ 494,009 $ 1,341,347 $ 1,319,871
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FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest (1) ...................... $ 36,882 $ 44,712 $ 178,915 $ 168,121
Amortization of debt expense ............................................. 334 502 2,460 2,726
Interest component of lease rental expenditures (2) ...................... 3,277 2,295 9,858 7,343
Preferred stock dividend requirements of consolidated subsidiaries (3) ... 3,909 -- 8,608 --
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Fixed charges ............................................................ 44,402 47,509 199,841 178,190
Preferred stock dividend requirements (4) ................................ 7,466 8,027 32,495 33,386
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Combined Fixed Charges and Preferred Stock Dividends ..................... $ 51,868 $ 55,536 $ 232,336 $ 211,576
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Ratio of Earnings to Fixed Charges .......................................... 3.53 10.40 6.71 7.41
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Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends ... 3.02 8.90 5.77 6.24
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<Caption>
1999 1998 1997
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EARNINGS
Pretax income (loss) from continuing operations before preferred
interests of subsidiaries .............................................. $ 344,573 $ (187,563) $ 258,640
Add: Fixed charges excluding capitalized interest and preferred
dividend requirements of consolidated subsidiaries ..................... 90,398 78,728 78,531
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Adjusted Earnings ........................................................ $ 434,971 $ (108,835) $ 337,171
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FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest (1) ...................... $ 132,986 $ 119,703 $ 105,148
Amortization of debt expense ............................................. 4,854 4,496 6,438
Interest component of lease rental expenditures (2) ...................... 5,789 3,808 3,438
Preferred stock dividend requirements of consolidated subsidiaries (3) ... -- -- --
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Fixed charges ............................................................ 143,629 128,007 115,024
Preferred stock dividend requirements (4) ................................ 24,788 2,905 --
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Combined Fixed Charges and Preferred Stock Dividends ..................... $ 168,417 $ 130,912 $ 115,024
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Ratio of Earnings to Fixed Charges .......................................... 3.03 --(5) 2.93
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Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends ... 2.58 --(5) 2.93
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</Table>
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(1) 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.
(2) 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.
(3) The Company does not receive a tax benefit for its preferred stock dividend
requirements of consolidated subsidiaries. As a result, this amount
represents the pre-tax earnings that would be required to cover preferred
stock dividend requirements of consolidated subsidiaries of $4 million.
(4) The Company does not receive a tax benefit for its preferred stock
dividends. As a result, this amount represents the pre-tax earnings that
would be required to cover preferred stock dividends of $5 million.
(5) Earnings were inadequate to cover fixed charges and combined fixed charges
and preferred stock dividends by $237 million and $240 million,
respectively, due to the $243 million write-down of the carrying value of
United States oil and gas properties.