EX-12.1 16 h89591ex12-1.txt COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 1 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)
SIX MONTHS ENDED JUNE 30, ------------------------ 2001 2000 2000 1999 1998 1997 1996 ---------- ---------- ---------- ---------- ---------- ---------- ---------- EARNINGS Pretax income (loss) from continuing operations(1) $ 808,887 $ 438,922 $1,203,681 $ 344,573 $ (187,563) $ 258,640 $ 200,195 Add: Fixed charges excluding capitalized interest 71,198 59,442 116,190 90,398 78,728 78,531 68,091 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Adjusted Earnings $ 880,085 $ 498,364 $1,319,871 $ 434,971 $ (108,835) $ 337,171 $ 268,286 ========== ========== ========== ========== ========== ========== ========== FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Interest expense including capitalized interest(2) $ 93,966 $ 83,183 $ 168,121 $ 132,986 $ 119,703 $ 105,148 $ 89,829 Amortization of debt expense 1,034 1,732 2,726 4,854 4,496 6,438 5,118 Interest component of lease rental expenditures(3) 5,066 3,368 7,343 5,789 3,808 3,438 3,856 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Fixed charges 100,066 88,283 178,190 143,629 128,007 115,024 98,803 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Preferred stock dividend requirements(4) 16,222 17,127 33,386 24,788 2,905 -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Combined fixed charges and preferred stock dividends $ 116,288 $ 105,410 $ 211,576 $ 168,417 $ 130,912 $ 115,024 $ 98,803 ========== ========== ========== ========== ========== ========== ========== Ratio of earnings to fixed charges 8.80 5.65 7.41 3.03 --(5) 2.93 2.72 ========== ========== ========== ========== ========== ========== ========== Ratio of earnings to combined fixed charges and preferred stock dividends 7.57 4.73 6.24 2.58 --(5) 2.93 2.72 ========== ========== ========== ========== ========== ========== ==========
------------- (1) Undistributed income of less-than-50 percent-owned affiliates is excluded. (2) 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. (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 percent to 34 percent 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.