EX-12.1 2 ex12-1.txt STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS 1 EXHIBIT 12.1 APACHE CORPORATION STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, ----------------------- (IN THOUSANDS) 2000 1999 1999 1998 --------- --------- --------- --------- EARNINGS Pretax income (loss) from continuing operations (1) $ 439,547 $ 56,215 $ 344,573 $(187,563) Add: Fixed charges excluding capitalized interest 59,442 43,131 90,398 78,728 --------- --------- --------- --------- Adjusted Earnings $ 498,989 $ 99,346 $ 434,971 $(108,835) ========= ========= ========= ========= FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Interest expense including capitalized interest (2) $ 83,183 $ 64,107 $ 132,986 $ 119,703 Amortization of debt expense 1,732 2,215 4,854 4,496 Interest component of lease rental expenditures (3) 3,368 2,778 5,789 3,808 --------- --------- --------- --------- Fixed charges 88,283 69,100 143,629 128,007 --------- --------- --------- --------- Preferred stock requirements (4) 17,125 8,370 24,788 2,905 --------- --------- --------- --------- Combined fixed charges and preferred stock dividends $ 105,408 $ 77,470 $ 168,417 $ 130,912 ========= ========= ========= ========= Ratio of earnings to fixed charges 5.65 1.44 3.03 --(5) ========= ========= ========= ========= Ratio of earnings to combined fixed charges and preferred stock dividends 4.73 1.28 2.58 --(5) ========= ========= ========= =========
(IN THOUSANDS) 1997 1996 1995 --------- --------- --------- EARNINGS Pretax income (loss) from continuing operations (1) $ 258,640 $ 200,195 $ 33,143 Add: Fixed charges excluding capitalized interest 78,531 68,091 77,220 --------- --------- --------- Adjusted Earnings $ 337,171 $ 268,286 $ 110,363 ========= ========= ========= FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Interest expense including capitalized interest (2) $ 105,148 $ 89,829 $ 88,057 Amortization of debt expense 6,438 5,118 4,665 Interest component of lease rental expenditures (3) 3,438 3,856 3,539 --------- --------- --------- Fixed charges 115,024 98,803 96,261 --------- --------- --------- Preferred stock requirements (4) -- -- -- --------- --------- --------- Combined fixed charges and preferred stock dividends $ 115,024 $ 98,803 $ 96,261 ========= ========= ========= Ratio of earnings to fixed charges 2.93 2.72 1.15 ========= ========= ========= Ratio of earnings to combined fixed charges and preferred stock dividends 2.93 2.72 1.15 ========= ========= =========
---------- (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.