EX-12.1 2 d755379dex121.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)    2013      2012      2011      2010      2009  

EARNINGS

               

Pretax income from continuing operations

    $ 4,404       $ 4,840       $ 8,064       $ 5,167       $ 244   

Add: Fixed charges excluding capitalized interest

      286         255         246         306         286   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted Earnings

    $ 4,690       $ 5,095       $ 8,310       $ 5,473       $ 530   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

               

Interest expense including capitalized interest (1)

    $ 571       $ 509       $ 433       $ 345       $ 310   

Amortization of debt expense

      9         7         6         18         5   

Interest component of lease rental expenditures (2)

      81         73         70         64         31   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges

      661         589         509         427         346   

Preferred stock dividend requirements (3)

      81         185         134         55         12   

Noncontrolling interest

      56         —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Combined Fixed Charges and Preferred Stock Dividends (1)

    $ 798       $ 774       $ 643       $ 482       $ 358   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of Earnings to Fixed Charges

      7.10         8.65         16.33         12.82         1.53   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

      5.88         6.58         12.92         11.35         1.48   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(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 32 to 34 percent applies 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.