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EXHIBIT 99.1
APACHE CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
(IN THOUSANDS)
NINE MONTHS ENDED
SEPTEMBER 30,
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1998 1997 1997 1996
-------- -------- -------- --------
EARNINGS
Pretax income from continuing operations(1) $ 53,943 $183,227 $258,640 $200,195
Add:Fixed charges excluding capitalized interest 60,430 54,801 78,531 68,091
-------- -------- -------- --------
Adjusted Earnings $114,373 $238,028 $337,171 $268,286
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FIXED CHARGES
Interest expense including capitalized interest(2) $ 90,498 $ 75,014 $105,148 $ 89,829
Amortization of debt expense 3,415 4,497 6,438 5,118
Interest component of lease rental expenditures(3) 2,788 2,191 3,438 3,856
Preferred stock requirements(4) 1,057 -- -- --
-------- -------- -------- --------
$ 97,758 $ 81,702 $115,024 $ 98,803
======== ======== ======== ========
Ratio of earnings to combined fixed charges and
preferred stock dividends 1.17 2.91 2.93 2.72
======== ======== ======== ========
1995 1994 1993
-------- -------- --------
EARNINGS
Pretax income from continuing operations(1) $ 33,143 $ 66,234 $ 62,067
Add:Fixed charges excluding capitalized interest 77,220 39,008 34,355
-------- -------- --------
Adjusted Earnings $110,363 $105,242 $ 96,422
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FIXED CHARGES
Interest expense including capitalized interest(2) $ 88,057 $ 37,838 $ 34,205
Amortization of debt expense 4,665 3,987 3,896
Interest component of lease rental expenditures(3) 3,539 3,217 2,533
Preferred stock requirements (4) -- -- --
-------- -------- --------
$ 96,261 $ 45,042 $ 40,634
======== ======== ========
Ratio of earnings to combined fixed charges and
preferred stock dividends 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.
(4) Represents the amount of pre-tax earnings that would be required to cover
preferred stock dividends of $0.6 million for the nine months ended
September 30, 1998.