EX-12.1 5 h00792exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES APACHE CORPORATION STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (IN THOUSANDS) EXHIBIT 12.1
NINE MONTHS ENDED SEPTEMBER 30, ----------------------- 2002 2001 2001 2000 ---------- ---------- ---------- ---------- EARNINGS Pretax income (loss) from continuing operations before preferred interests of subsidiaries ........................................................... $ 613,396 $1,073,818 $1,206,863 $1,203,681 Add: Fixed charges excluding capitalized interest and preferred interest requirements of consolidated subsidiaries ................................. 97,397 103,667 134,484 116,190 ---------- ---------- ---------- ---------- Adjusted Earnings ........................................................... $ 710,793 $1,177,485 $1,341,347 $1,319,871 ========== ========== ========== ========== FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Interest expense including capitalized interest ............................. $ 117,120 $ 138,106 $ 178,915 $ 168,121 Amortization of debt expense ................................................ 1,330 2,123 2,460 2,726 Interest component of lease rental expenditures (1) ......................... 9,440 7,826 9,858 7,343 Preferred interest requirements of consolidated subsidiaries (2) ........... 15,179 3,612 8,608 -- ---------- ---------- ---------- ---------- Fixed charges ............................................................... 143,069 151,667 199,841 178,190 Preferred stock dividend requirements (3) ................................... 15,112 24,399 32,495 33,386 ---------- ---------- ---------- ---------- Combined Fixed Charges and Preferred Stock Dividends ........................ $ 158,181 $ 176,066 $ 232,336 $ 211,576 ========== ========== ========== ========== Ratio of Earnings to Fixed Charges ............................................. 4.97 7.76 6.71 7.41 ========== ========== ========== ========== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends ...................................................................... 4.49 6.69 5.77 6.24 ========== ========== ========== ========== 1999 1998 1997 ---------- ---------- ---------- EARNINGS Pretax income (loss) from continuing operations before preferred interests of subsidiaries ........................................................... $ 344,573 $ (187,563) $ 258,640 Add: Fixed charges excluding capitalized interest and preferred interest requirements of consolidated subsidiaries ................................. 90,398 78,728 78,531 ---------- ---------- ---------- Adjusted Earnings ........................................................... $ 434,971 $ (108,835) $ 337,171 ========== ========== ========== FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Interest expense including capitalized interest ............................. $ 132,986 $ 119,703 $ 105,148 Amortization of debt expense ................................................ 4,854 4,496 6,438 Interest component of lease rental expenditures (1) ......................... 5,789 3,808 3,438 Preferred interest requirements of consolidated subsidiaries (2) ........... -- -- -- ---------- ---------- ---------- Fixed charges ............................................................... 143,629 128,007 115,024 Preferred stock dividend requirements (3) ................................... 24,788 2,905 -- ---------- ---------- ---------- Combined Fixed Charges and Preferred Stock Dividends ........................ $ 168,417 $ 130,912 $ 115,024 ========== ========== ========== Ratio of Earnings to Fixed Charges ............................................. 3.03 --(4) 2.93 ========== ========== ========== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends ...................................................................... 2.58 --(4) 2.93 ========== ========== ==========
---------- (1) 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. (2) The Company does not receive a tax benefit for a portion of its preferred interests of consolidated subsidiaries. As a result, these amounts represent the pre-tax earnings that would be required to cover preferred interests requirements of consolidated subsidiaries. (3) 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 its preferred stock dividends. (4) 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.