EXHIBIT 12.1
APACHE CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND COMBINED FIXED CHARGES, PREFERRED STOCK DIVIDENDS
AND PREFERRED INTERESTS OF SUBSIDIARIES
(IN THOUSANDS)
<Table>
<Caption>
(UNAUDITED) 2001 2000 1999 1998 1997
---------- ---------- -------- --------- ---------
EARNINGS
Pretax income from continuing operations ............ $1,199,254 $1,203,681 $344,573 $(187,563) $ 258,640
Add: Fixed charges excluding capitalized interest ... 142,093 116,190 90,398 78,728 78,531
---------- ---------- -------- --------- ---------
Adjusted Earnings ................................... $1,341,347 $1,319,871 $434,971 $(108,835) $ 337,171
========== ========== ======== ========= =========
FIXED CHARGES, PREFERRED STOCK DIVIDENDS
AND MINORITY INTEREST
Interest expense including capitalized interest(1) .. $ 178,915 $ 168,121 $132,986 $ 119,703 $ 105,148
Amortization of debt expense ........................ 2,460 2,726 4,854 4,496 6,438
Interest component of lease rental expenditures(2) .. 9,858 7,343 5,789 3,808 3,438
---------- ---------- -------- --------- ---------
Fixed charges ....................................... 191,233 178,190 143,629 128,007 115,024
Preferred stock dividend requirements(3) ............ 35,012 33,386 24,788 2,905 --
Preferred interests of subsidiaries(4) .............. 6,091 -- -- -- --
---------- ---------- -------- --------- ---------
Combined Fixed Charges, Preferred Stock Dividends
and Preferred Interests of Subsidiaries ................. $ 232,336 $ 211,576 $168,417 $ 130,912 $ 115,024
========== ========== ======== ========= =========
Ratio of Earnings to Fixed Charges ........................ 7.01 7.41 3.03 --(5) 2.93
========== ========== ======== ========= =========
Ratio of Earnings to Combined Fixed Charges,
Preferred Stock Dividends and Preferred
Interests of Subsidiaries ............................... 5.77 6.24 2.58 --(5) 2.93
========== ========== ======== ========= =========
</Table>
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(1) Apache guaranteed and is contingently liable for certain debt. 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.
(2) 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.
(3) The Company does not receive a tax benefit for its preferred stock
dividends. As a result, this amount represents the pre-tax earnings that
would be required to cover preferred stock dividends (including
subsidiaries) of $21 million in 2001, $20.0 million in 2000, $14 million in
1999 and $2 million in 1998.
(4) Excludes preferred stock dividends of subsidiaries.
(5) Earnings were inadequate to cover fixed charges and combined fixed charges
and preferred stock dividends by $237 million and $240 million,
respectively, due to the $243 million write-down of the carrying value of
United States oil and gas properties.