1 Exhibit 99.1 APACHE CORPORATION STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (In thousands) 1998 1997 1996 1995 1994 ----------- ----------- ----------- ----------- ----------- EARNINGS Pretax income (loss) from continuing operations (1).......................... $ (187,563) $ 258,640 $ 200,195 $ 33,143 $ 66,234 Add: Fixed charges excluding capitalized interest.................... 78,728 78,531 68,091 77,220 39,008 ----------- ----------- ----------- ----------- ----------- Adjusted earnings........................ $ (108,835) $ 337,171 $ 268,286 $ 110,363 $ 105,242 =========== =========== =========== =========== =========== FIXED CHARGES Interest expense including capitalized interest (2)............................ $ 119,703 $ 105,148 $ 89,829 $ 88,057 $ 37,838 Amortization of debt expense............. 4,496 6,438 5,118 4,665 3,987 Interest component of lease rental expenditures (3)........................ 3,808 3,438 3,856 3,539 3,217 ---------- ----------- ----------- ----------- ----------- 128,007 $ 115,024 $ 98,803 $ 96,261 $ 45,042 =========== =========== =========== =========== =========== Ratio of earnings to fixed charges......... --(4) 2.93 2.72 1.15 2.34 =========== =========== =========== =========== =========== (1) Undistributed income of less-than-50% owned affiliates is excluded. (2) Apache has guaranteed and is contingently liable for certain debt. Fixed charges, relating to the debt for which Apache is 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) Earnings were inadequate to cover fixed charges by $236.8 million for 1998 due to a $243.2 million non-cash write-down of the carrying value of United States proved oil and gas properties.