EX-12.1 7 h95926ex12-1.txt STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS 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)
(UNAUDITED) 2001 2000 1999 1998 1997 ---------- ---------- ---------- ---------- ---------- EARNINGS Pretax income from continuing operations before preferred interests of subsidiaries................ $1,206,863 $1,203,681 $ 344,573 $ (187,563) $ 258,640 Add:Fixed charges excluding capitalized interest and preferred dividend requirements of consolidated subsidiaries.......................... 134,484 116,190 90,398 78,728 78,531 ---------- ---------- ---------- ---------- ---------- Adjusted Earnings.................................... $1,341,347 $1,319,871 $ 434,971 $ (108,835) $ 337,171 ========== ========== ========== ========== ========== FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Interest expense including capitalized interest (1).. $ 178,915 $ 168,121 $ 132,986 $ 119,703 $ 105,148 Amortization of debt expense......................... 2,460 2,726 4,854 4,496 6,438 Interest component of lease rental expenditures (2).. 9,858 7,343 5,789 3,808 3,438 Preferred stock dividend requirements of consolidated subsidiaries (3)................................... 8,608 - - - - ---------- ---------- ---------- ---------- ---------- Fixed charges........................................ 199,841 178,190 143,629 128,007 115,024 Preferred stock dividend requirements (4)............ 32,495 33,386 24,788 2,905 - ---------- ---------- ---------- ---------- ---------- Combined Fixed Charges and Preferred Stock Dividends.... $ 232,336 $ 211,576 $ 168,417 $ 130,912 $ 115,024 ========== ========== ========== ========== ========== Ratio of Earnings to Fixed Charges...................... 6.71 7.41 3.03 -(5) 2.93 ========== ========== ========== ========== ========== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends............................. 5.77 6.24 2.58 -(5) 2.93 ========== ========== ========== ========== ==========
-------------- (1) 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. (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% applies for all periods presented. (3) The Company does not receive a tax benefit for a portion of its preferred stock dividend requirements of consolidated subsidiaries. As a result, this amount represents the pre-tax earnings that would be required to cover preferred stock dividend requirements of consolidated subsidiaries of $8 million. (4) The Company does not receive a tax benefit for its preferred stock dividends. As a result, this amount represents the pre-tax earnings that would be required to cover preferred stock dividends of $20 million in 2001, $20 million in 2000, $14 million in 1999 and $2 million in 1998. (5) Earnings were inadequate to cover fixed charges and combined fixed charges and preferred stock dividends by $237 million and $240 million, respectively, due to the $243 million write-down of the carrying value of United States oil and gas properties.