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, EXCEPT RATIO DATA)


<Table>
<Caption>
(UNAUDITED)                                                       2004         2003         2002         2001         2000
                                                               ----------   ----------   ----------   ----------   ----------

                                                                                                    
EARNINGS
    Pretax income from continuing operations before
      preferred interests of subsidiaries ..................   $2,663,083   $1,930,925   $  915,194   $1,206,863   $1,203,681
    Add: Fixed charges excluding capitalized interest and
      preferred interests requirements of consolidated
      subsidiaries .........................................      134,797      132,820      128,730      134,484      116,190
                                                               ----------   ----------   ----------   ----------   ----------

    Adjusted Earnings ......................................   $2,797,880   $2,063,745   $1,043,924   $1,341,347   $1,319,871
                                                               ==========   ==========   ==========   ==========   ==========

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
    Interest expense including capitalized interest (1) ....   $  168,090   $  173,045   $  155,667   $  178,915   $  168,121
    Amortization of debt expense ...........................        2,471        2,163        1,859        2,460        2,726
    Interest component of lease rental expenditures (2) ....       14,984       14,458       11,895        9,858        7,343
    Preferred interest requirements of consolidated
      subsidiaries (3) .....................................           --       11,805       19,581        8,608           --
                                                               ----------   ----------   ----------   ----------   ----------
    Fixed charges ..........................................      185,545      201,471      189,002      199,841      178,190

    Preferred stock dividend requirements (4) ..............        9,058        9,968       17,540       32,495       33,386
                                                               ----------   ----------   ----------   ----------   ----------

Combined Fixed Charges and Preferred Stock Dividends .......   $  194,603   $  211,439   $  206,542   $  232,336   $  211,576
                                                               ==========   ==========   ==========   ==========   ==========

Ratio of Earnings to Fixed Charges .........................        15.08        10.24         5.52         6.71         7.41
                                                               ==========   ==========   ==========   ==========   ==========


Ratio of Earnings to Combined Fixed Charges and Preferred
  Stock Dividends ..........................................        14.38         9.76         5.05         5.77         6.24
                                                               ==========   ==========   ==========   ==========   ==========
</Table>




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(1)   The Company did not receive a tax benefit for $5 million of transaction
      costs written off to interest expense when the Company retired its
      preferred interests of subsidiaries in September 2003. Given the
      non-deductibility of the charge, $9 million of pre-tax income was required
      to cover the $5 million write-off. Accordingly, interest expense has been
      grossed up by $4 million.

(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 to 34 percent of rental payments applies for
      all periods presented.

(3)   The Company did not receive a tax benefit for a portion of its preferred
      interests of consolidated subsidiaries. This amount represents the pre-tax
      earnings that would be required to cover preferred interests requirements
      of consolidated subsidiaries. In September 2003, the Company retired its
      preferred interests of subsidiaries.

(4)   The Company does not receive a tax benefit for its preferred stock
      dividends. This amount represents the pre-tax earnings that would be
      required to cover its preferred stock dividends.