EX-12.1 6 d836834dex121.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)    2014     2013      2012      2011      2010  

EARNINGS

              

Pretax income (loss) from continuing operations

    $ (2,906 )    $ 4,404       $ 4,840       $ 8,064       $ 5,167   

Add: Fixed charges excluding capitalized interest

      192        278         251         247         311   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted Earnings

 $ (2,714 )  $ 4,682    $ 5,091    $ 8,311    $ 5,478   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Interest expense including capitalized interest(1)

 $ 499    $ 560    $ 501    $ 430    $ 343   

Amortization of debt expense

   6      8      7      5      17   

Interest component of lease rental expenditures(2)

   50      74      66      64      59   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges

   555      642      574      499      419   

Preferred stock dividend requirements(3)

   —        79      185      130      55   

Noncontrolling interest

   343      56      —        —        —     
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Combined Fixed Charges and Preferred Stock Dividends(1)

 $ 898    $ 777    $ 759    $ 629    $ 474   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of Earnings to Fixed Charges

   (4.89 )    7.29      8.86      16.67      13.10   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

   (3.02 )    6.03      6.71      13.22      11.57   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

(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.