EX-12.1 8 d457834dex121.htm EX-12.1 EX-12.1

EXHIBIT 12.1

APACHE CORPORATION

STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(In millions, except ratio data)

 

(Unaudited)    2012      2011      2010      2009      2008  

EARNINGS

               

Pretax income from continuing operations

    $ 4,877       $ 8,093       $ 5,206       $ 326         933   

Add: Fixed charges excluding capitalized interest

      255         246         306         286         214   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted Earnings

    $ 5,132       $ 8,339       $ 5,512       $ 612       $ 1,147   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

               

Interest expense including capitalized interest (1)

    $ 509       $ 433       $ 345       $ 310       $ 281   

Amortization of debt expense

      7         6         18         5         4   

Interest component of lease rental expenditures (2)

      73         70         64         31         24   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges

      589         509         427         346         309   

Preferred stock dividend requirements (3)

      185         134         55         12         7   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Combined Fixed Charges and Preferred Stock Dividends (1)

    $ 774       $ 643       $ 482       $ 358       $ 316   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of Earnings to Fixed Charges

      8.71         16.39         12.93         1.77         3.72   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

      6.63         12.97         11.44         1.71         3.63   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(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 25 to 35 percent of rental payments related to interest factors 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.