EX-12.1 2 h67769exv12w1.htm EX-12.1 exv12w1
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,                                
    2009     2008     2008     2007     2006     2005     2004  
EARNINGS (LOSS)
                                                        
Pretax income (loss) from continuing operations
   $ (796,102 )   $ 5,833,110     $ 932,392     $ 4,672,612     $ 4,009,595     $ 4,206,254     $ 2,663,083  
Add: Fixed charges excluding capitalized interest
     209,093       153,032       214,288       258,221       178,399       138,399       134,797  
 
                                          
 
                                                        
Adjusted Earnings (Loss)
   $ (587,009 )   $ 5,986,142     $ 1,146,680     $ 4,930,833     $ 4,187,994     $ 4,344,653     $ 2,797,880  
 
                                          
 
                                                        
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
                                                        
Interest expense including capitalized interest (1)
   $ 233,137     $ 201,690     $ 280,457     $ 308,235     $ 217,454     $ 175,419     $ 168,090  
Amortization of debt expense
     4,173       2,498       3,689       3,310       2,048       3,748       2,471  
Interest component of lease rental expenditures (2)
     17,108       17,263       24,306       22,424       20,198       16,220       14,984  
 
                                          
 
                                                        
Fixed charges
     254,418       221,451       308,452       333,969       239,700       195,387       185,545  
 
                                                        
Preferred stock dividend requirements (3)
     3,897       6,794       7,438       9,437       8,922       9,105       9,058  
 
                                          
 
                                                        
Combined Fixed Charges and Preferred Stock Dividends (1)
   $ 258,315     $ 228,245     $ 315,890     $ 343,406     $ 248,622     $ 204,492     $ 194,603  
 
                                          
 
                                                        
Ratio of Earnings to Fixed Charges
     —       27.03       3.72       14.76       17.47       22.24       15.08  
 
                                          
 
                                                        
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
     —       26.23       3.63       14.36       16.84       21.25       14.38  
 
                                          
 
(1)   Interest expense related to the provisions for uncertainty in income taxes under ASC Topic 740, “Income Taxes” is not included in the computation of ratios of earnings to fixed charges and combined fixed charges and preferred stock dividends.
 
(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 percent applies to rental payments for all periods presented.
 
(3)   The Company does not receive a tax benefit for its preferred stock dividends. This amount represents the pre-tax earnings that would be required to cover its preferred stock dividends.