EXHIBIT 12.1
APACHE CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND COMBINED FIXED CHARGES, PREFERRED STOCK DIVIDENDS
AND PREFERRED INTERESTS OF SUBSIDIARIES
(IN THOUSANDS)
<Table>
<Caption>
(UNAUDITED) 2002 2001 2000
------------ ------------ ------------
EARNINGS
Pretax income (loss) from continuing operations before
preferred interests of subsidiaries ............................. $ 915,194 $ 1,206,863 $ 1,203,681
Add:Fixed charges excluding capitalized interest and
preferred interest requirements of consolidated subsidiaries .... 128,730 134,484 116,190
------------ ------------ ------------
Adjusted Earnings ................................................. $ 1,043,924 $ 1,341,347 $ 1,319,871
============ ============ ============
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest ................... $ 155,667 $ 178,915 $ 168,121
Amortization of debt expense ...................................... 1,859 2,460 2,726
Interest component of lease rental expenditures (1) ............... 11,895 9,858 7,343
Preferred interest requirements of consolidated subsidiaries (2)... 19,581 8,608 --
------------ ------------ ------------
Fixed charges ..................................................... 189,002 199,841 178,190
Preferred stock dividend requirements (3) ......................... 17,540 32,495 33,386
------------ ------------ ------------
Combined Fixed Charges and Preferred Stock Dividends ................ $ 206,542 $ 232,336 $ 211,576
============ ============ ============
Ratio of Earnings to Fixed Charges .................................. 5.52 6.71 7.41
============ ============ ============
Ratio of Earnings to Combined Fixed Charges and Preferred
Stock Dividends .................................................... 5.05 5.77 6.24
============ ============ ============
<Caption>
(UNAUDITED)
1999 1998
------------ ------------
EARNINGS
Pretax income (loss) from continuing operations before
preferred interests of subsidiaries ............................. $ 344,573 $ (187,563)
Add:Fixed charges excluding capitalized interest and
preferred interest requirements of consolidated subsidiaries .... 90,398 78,728
------------ ------------
Adjusted Earnings ................................................. $ 434,971 $ (108,835)
============ ============
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest ................... $ 132,986 $ 119,703
Amortization of debt expense ...................................... 4,854 4,496
Interest component of lease rental expenditures (1) ............... 5,789 3,808
Preferred interest requirements of consolidated subsidiaries (2)... -- --
------------ ------------
Fixed charges ..................................................... 143,629 128,007
Preferred stock dividend requirements (3) ......................... 24,788 2,905
------------ ------------
Combined Fixed Charges and Preferred Stock Dividends ................ $ 168,417 $ 130,912
============ ============
Ratio of Earnings to Fixed Charges .................................. 3.03 -- (4)
============ ============
Ratio of Earnings to Combined Fixed Charges and Preferred
Stock Dividends .................................................... 2.58 -- (4)
============ ============
</Table>
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(1) 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 percent applies for all periods
presented.
(2) The Company does not receive a tax benefit for a portion of its preferred
interests of consolidated subsidiaries. As a result, this amount
represents the pre-tax earnings that would be required to cover preferred
interest requirements of consolidated subsidiaries.
(3) 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 its preferred stock dividends.
(4) Earnings in 1998 were inadequate to cover either fixed charges or combined
fixed charges and preferred stock dividends by $237 million and $240
million, respectively, as the Company reported a loss for the period after
a $243 million write-down of the carrying value of United States oil and
gas properties in compliance with full-cost accounting rules (refer to
Critical Accounting Policies under Item 7 of this Form 10-K).