EX-12.1 4 h78042exv12w1.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 millions, except ratio data)
                                         
(Unaudited)   2010     2009     2008     2007     2006  
EARNINGS
                                        
Pretax income from continuing operations
   $ 5,206     $ 326       933     $ 4,673     $ 4,010  
Add: Fixed charges excluding capitalized interest
     306       286       214       258       178  
 
                              
Adjusted Earnings
   $ 5,512     $ 612     $ 1,147     $ 4,931     $ 4,188  
 
                              
 
                                        
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
                                        
Interest expense including capitalized interest (1)
   $ 345     $ 310     $ 281     $ 308     $ 218  
Amortization of debt expense
     18       5       4       3       2  
Interest component of lease rental expenditures (2)
     64       31       24       23       20  
 
                              
Fixed charges
     427       346       309       334       240  
 
Preferred stock dividend requirements (3)
     55       12       7       9       9  
 
                              
Combined Fixed Charges and Preferred Stock Dividends (1)
   $ 482     $ 358     $ 316     $ 343     $ 249  
 
                              
 
Ratio of Earnings to Fixed Charges
     12.93       1.77       3.72       14.76       17.47  
 
                              
 
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
     11.44       1.71       3.63       14.36       16.84  
 
                              
 
(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 of rental payments applies 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.