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Exhibit 99.2
APACHE CORPORATION
Statement of Computation of Ratios of Earnings to Combined Fixed
Charges and Preferred Stock Dividends
(In Thousands)
Six Months Ended
June 30,
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1998 1997 1997 1996 1995 1994 1993
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EARNINGS
Pretax income from continuing
operations (1) ........................ $46,553 $131,711 $258,640 $200,195 $ 33,143 $ 66,234 $62,067
Add: Fixed charges excluding
capitalized interest .................. 41,026 34,646 78,531 68,091 77,220 39,008 34,355
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Adjusted Earnings ....................... $87,579 $166,357 $337,171 $268,286 $110,363 $105,242 $96,422
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FIXED CHARGES
Interest expense including capitalized
interest (2) .......................... $60,331 $ 48,463 $105,148 $ 89,829 $ 88,057 $ 37,838 $34,205
Amortization of debt expense ............ 2,308 2,578 6,438 5,118 4,665 3,987 3,896
Interest component of lease rental
expenditures (3) ...................... 1,775 1,403 3,438 3,856 3,539 3,217 2,533
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$64,414 $ 52,444 $115,024 $ 98,803 $ 96,261 $ 45,042 $40,634
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Ratio of earnings to combined fixed charges
and preferred stock dividends ........... 1.36 3.17 2.93 2.72 1.15 2.34 2.37
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(1) Undistributed income of less-than-50%-owned affiliates is excluded.
(2) Apache guaranteed and was contingently liable for certain debt. This debt,
primarily associated with partnership operations, totaled $1.7 million at
December 31, 1996. The outstanding balance was repaid in January 1997 and
the facility was terminated. Fixed charges, relating to the debt for which
Apache was contingently liable, have not been included in the fixed charges
for any of the periods shown above.
(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.