EX-12.1 4 d589400dex121.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)

 

     For the Period Ended  
     June 30,      December 31,  
(Unaudited)    2018      2017      2016     2015*     2014*     2013*  

EARNINGS

               

Pretax income (loss) from continuing operations

    $ 896      $ 918      $ (1,682 )    $ (12,169 )    $ (6,830 )    $ 947  

Add:Fixed charges excluding capitalized interest

      240        498        470       540       466       538  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Earnings

    $ 1,136      $ 1,416      $ (1,212 )    $ (11,629 )    $ (6,364 )    $ 1,485  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

               

Interest expense including capitalized interest (1)

    $ 222      $ 457      $ 464     $ 486     $ 499     $ 560  

Amortization of debt expense

      6        9        8       11       6       8  

Interest component of lease rental expenditures (2)

      37        82        47       57       45       69  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

      265        548        519       554       550       637  

Preferred stock dividend requirements (3)

      —          —          —          —          —          6,526  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Combined Fixed Charges and Preferred Stock Dividends (1)

    $ 265      $ 548      $ 519     $ 554     $ 550     $ 7,163  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of Earnings to Fixed Charges (4)

      4.29        2.58        —          —          —          2.33  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends (5)(6)

      4.29        2.58        —          —          —          —     
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

*

Financial information for all prior year periods has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1 to consolidated financial statements.

 

(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 one-third of rental expense, which is considered to be a reasonable approximation of interest factors.

(3)

The Company does not receive a tax benefit for its preferred stock dividends. This amount represents the pre-tax earnings, which is calculated using the effective tax rate, that would be required to cover its preferred stock dividends.

(4)

The Company’s 2016, 2015, and 2014 earnings are inadequate to cover fixed charges, with a deficit of $1.7 billion, $12.2 billion, and $6.9 billion, respectively.

(5)

The Company’s 2016, 2015, and 2014 earnings are inadequate to cover fixed charges and noncontrolling interest, with a deficit of $1.9 billion, $11.9 billion, and $7.3 billion, respectively.

(6)

The Company’s 2013 earnings are inadequate to cover fixed charges, preferred stock dividend requirements, and noncontrolling interest, with a deficit of $5.7 billion.