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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
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
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(IN THOUSANDS) 2000 1999 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C> <C> <C>
EARNINGS
Pretax income (loss) from continuing operations (1) $ 782,228 $ 181,807 $ 344,573 $(187,563) $ 258,640 $ 200,195 $ 33,143
Add: Fixed charges excluding capitalized interest 89,544 65,438 90,398 78,728 78,531 68,091 77,220
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Adjusted Earnings $ 871,772 $ 247,245 $ 434,971 $(108,835) $ 337,171 $ 268,286 $ 110,363
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FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Interest expense including capitalized interest (2) $ 126,958 $ 97,586 $ 132,986 $ 119,703 $ 105,148 $ 89,829 $ 88,057
Amortization of debt expense 2,219 3,316 4,854 4,496 6,438 5,118 4,665
Interest component of lease rental expenditures (3) 5,219 4,199 5,789 3,808 3,438 3,856 3,539
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Fixed charges 134,396 105,101 143,629 128,007 115,024 98,803 96,261
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Preferred stock requirements (4) 25,234 16,713 24,788 2,905 -- -- --
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Combined fixed charges and preferred stock
dividends $ 159,630 $ 121,814 $ 168,417 $ 130,912 $ 115,024 $ 98,803 $ 96,261
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to fixed charges 6.49 2.35 3.03 --(5) 2.93 2.72 1.15
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to combined fixed charges and
preferred stock dividends 5.46 2.03 2.58 --(5) 2.93 2.72 1.15
========= ========= ========= ========= ========= ========= =========
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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.
