1 Exhibit 12.1 APACHE CORPORATION STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Nine Months Ended September 30, Year Ended December 31, ----------------------- ------------------------------------------------------------- (IN THOUSANDS) 1996 1995 1995 1994 1993 1992 1991 - ----------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- EARNINGS - -------- Pretax income (loss) from continuing operations (1) $116,029 $19,771 $33,143 $66,234 $62,067 ($5,759) ($57,482) Add: Fixed charges excluding capitalized interest 49,465 60,203 77,220 39,008 34,355 43,603 41,889 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Adjusted earnings $165,494 $79,974 $110,363 $105,242 $96,422 $37,844 ($15,593) ========= ========== ========== ========== ========== ========== ========== FIXED CHARGES - ------------- Interest expense including capitalized interest (2) $ 64,758 $67,333 $88,057 $37,838 $34,205 $45,731 $48,117 Amortization of debt expense 3,515 3,491 4,665 3,987 3,896 3,888 2,052 Interest component of lease rental expenditures (3) 2,896 2,632 3,539 3,217 2,533 2,980 2,373 ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 71,169 $73,456 $96,261 $45,042 $40,634 $52,599 $52,542 ========= ========== ========== ========== ========== ========== ========== Ratio of earnings to fixed charges 2.33 1.09 1.15 2.34 2.37 0.72(4) -- (4) ========= ========== ========== ========== ========== ========== ========== (1) Undistributed income of less-than-50% owned affiliates is excluded. (2) Apache has guaranteed and is contingently liable for certain debt. This debt, primarily associated with partnership operations, totaled $2.2 million at September 30, 1996. The weighted average interest rate was 6.2% at September 30, 1996. Fixed charges, relating to debt for which Apache is contingently liable, have not been included in the fixed charges for any of the periods shown above, based on the financial position of the partnerships and their ability to service the debt. (3) 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% applies for all periods presented. (4) Earnings were inadequate to cover fixed charges by $68.1 million for 1991 and by $14.8 million for 1992 due to write downs of the carrying value of the U.S. and Canadian oil and gas properties of DEK Energy Company ("DEKALB"), formerly known as DEKALB Energy Company, and losses incurred on the divestiture of DEKALB's U.S. oil and gas properties.