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>
SIX MONTHS ENDED
JUNE 30,
----------------------
2003 2002 2002 2001 2000 1999 1998
---------- ---------- ---------- ---------- ---------- ---------- ----------
EARNINGS
Pretax income (loss) from continuing
operations before preferred interests
of subsidiaries.......................... $1,000,549 $ 372,778 $ 915,194 $1,206,863 $1,203,681 $ 344,573 $ (187,563)
Add: Fixed charges excluding capitalized
interest and preferred interest
requirements of consolidated
subsidiaries............................. 61,785 65,041 128,730 134,484 116,190 90,398 78,728
---------- ---------- ---------- ---------- ---------- ---------- ----------
Adjusted Earnings.......................... $1,062,334 $ 437,819 $1,043,924 $1,341,347 $1,319,871 $ 434,971 $ (108,835)
========== ========== ========== ========== ========== ========== ==========
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized
interest................................. $ 79,124 $ 78,333 $ 155,667 $ 178,915 $ 168,121 $ 132,986 $ 119,703
Amortization of debt expense............... 1,067 800 1,859 2,460 2,726 4,854 4,496
Interest component of lease rental
expenditures (1)......................... 5,444 6,372 11,895 9,858 7,343 5,789 3,808
Preferred interest requirements of
consolidated subsidiaries (2)............ 8,404 10,525 19,581 8,608 -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Fixed charges.............................. 94,039 96,030 189,002 199,841 178,190 143,629 128,007
Preferred stock dividend
requirements (3)......................... 5,071 12,815 17,540 32,495 33,386 24,788 2,905
---------- ---------- ---------- ---------- ---------- ---------- ----------
Combined Fixed Charges and Preferred
Stock Dividends.......................... $ 99,110 $ 108,845 $ 206,542 $ 232,336 $ 211,576 $ 168,417 $ 130,912
========== ========== ========== ========== ========== ========== ==========
Ratio of Earnings to Fixed Charges........... 11.30 4.56 5.52 6.71 7.41 3.03 --(4)
========== ========== ========== ========== ========== ========== ==========
Ratio of Earnings to Combined Fixed
Charges and Preferred Stock Dividends...... 10.72 4.02 5.05 5.77 6.24 2.58 --(4)
========== ========== ========== ========== ========== ========== ==========
</Table>
(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.