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EXHIBIT 12.1
APACHE CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(IN THOUSANDS)
NINE MONTHS ENDED
SEPTEMBER 30,
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1999 1998 1998 1997 1996 1995 1994
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EARNINGS
Pretax income (loss) from continuing operations (1) $ 181,807 $ 53,943 $(187,563) $ 258,640 $200,195 $ 33,143 $ 66,234
Add: Fixed charges excluding capitalized interest 65,438 60,430 78,728 78,531 68,091 77,220 39,008
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Adjusted Earnings $ 247,245 $ 114,373 $(108,835) $ 337,171 $268,286 $110,363 $105,242
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FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest (2) $ 97,586 $ 90,498 $ 119,703 $ 105,148 $ 89,829 $ 88,057 $ 37,838
Amortization of debt expense 3,316 3,415 4,496 6,438 5,118 4,665 3,987
Interest component of lease rental expenditures (3) 4,199 2,788 3,808 3,438 3,856 3,539 3,217
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Fixed charges 105,101 96,701 128,007 115,024 98,803 96,261 45,042
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Preferred stock requirements (4) 16,713 1,057 2,905 -- -- -- --
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Combined fixed charges and preferred stock dividends $ 121,814 $ 97,758 $ 130,912 $ 115,024 $ 98,803 $ 96,261 $ 45,042
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Ratio of earnings to fixed charges 2.35 1.18 --(5) 2.93 2.72 1.15 2.34
========= ========= ========= ========= ======== ======== ========
Ratio of earnings to combined fixed charges and
preferred stock dividends 2.03 1.17 --(5) 2.93 2.72 1.15 2.34
========= ========= ========= ========= ======== ======== ========
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(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) Represents the amount of pre-tax earnings that would be required to cover
preferred stock dividends.
(5) Earnings were inadequate to cover fixed charges and combined fixed charges
and preferred stock dividends by $236.8 million and $239.7 million,
respectively, due to the $243.2 million write-down of the carrying value of
United States oil and gas properties.