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)
QUARTER ENDED
MARCH 31,
--------------------------
2003 2002 2002 2001
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EARNINGS
Pretax income (loss) from continuing operations before preferred
interests of subsidiaries....................................... $ 522,645 $ 126,244 $ 915,194 $1,206,863
Add: Fixed charges excluding capitalized interest and preferred
interest requirements of consolidated subsidiaries............... 29,822 30,471 128,730 134,484
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Adjusted Earnings................................................... $ 552,467 $ 156,715 $1,043,924 $1,341,347
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FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest..................... $ 37,696 $ 36,882 $ 155,667 $ 178,915
Amortization of debt expense........................................ 531 334 1,859 2,460
Interest component of lease rental expenditures (1)................. 2,827 3,277 11,895 9,858
Preferred interest requirements of consolidated subsidiaries (2).... 4,082 3,909 19,581 8,608
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Fixed charges....................................................... 45,136 44,402 189,002 199,841
Preferred stock dividend requirements (3)........................... 2,361 7,466 17,540 32,495
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Combined Fixed Charges and Preferred Stock Dividends................ $ 47,497 $ 51,868 $ 206,542 $ 232,336
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Ratio of Earnings to Fixed Charges..................................... 12.24 3.53 5.52 6.71
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Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends........................................ 11.63 3.02 5.05 5.77
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2000 1999 1998
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EARNINGS
Pretax income (loss) from continuing operations before preferred
interests of subsidiaries....................................... $1,203,681 $ 344,573 $ (187,563)
Add: Fixed charges excluding capitalized interest and preferred
interest requirements of consolidated subsidiaries............... 116,190 90,398 78,728
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Adjusted Earnings................................................... $1,319,871 $ 434,971 $ (108,835)
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FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest..................... $ 168,121 $ 132,986 $ 119,703
Amortization of debt expense........................................ 2,726 4,854 4,496
Interest component of lease rental expenditures (1)................. 7,343 5,789 3,808
Preferred interest requirements of consolidated subsidiaries (2).... - - -
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Fixed charges....................................................... 178,190 143,629 128,007
Preferred stock dividend requirements (3)........................... 33,386 24,788 2,905
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Combined Fixed Charges and Preferred Stock Dividends................ $ 211,576 $ 168,417 $ 130,912
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Ratio of Earnings to Fixed Charges..................................... 7.41 3.03 - (4)
============ ============= =============
Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends........................................ 6.24 2.58 - (4)
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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, these amounts
represent the pre-tax earnings that would be required to cover preferred
interests 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 fixed charges and combined fixed
charges and preferred stock dividends by $237 million and $240 million,
respectively, as the Company incurred a $243 million write-down of the
carrying value of United States oil and gas properties in compliance with
full-cost accounting rules.