EX-12.1 4 apaexhibit121201710-k.htm EXHIBIT 12.1 Exhibit
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)
2017
 
2016
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
EARNINGS
 
 
 
 
 
 
 
 
 
Pretax income (loss) from continuing operations
$
918

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

Add:Fixed charges excluding capitalized interest
498

 
470

 
540

 
466

 
538

Adjusted Earnings
$
1,416

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

 
 
 
 
 
 
 
 
 
 
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
 
 
 
 
 
 
 
 
Interest expense including capitalized interest (1)
$
457

 
$
464

 
$
486

 
$
499

 
$
560

Amortization of debt expense
9

 
8

 
11

 
6

 
8

Interest component of lease rental expenditures (2)
82

 
47

 
57

 
45

 
69

Fixed charges
548

 
519

 
554

 
550

 
637

Preferred stock dividend requirements (3)
—

 
—

 
—

 
—

 
6,526

Combined Fixed Charges and Preferred Stock Dividends (1)
$
548

 
$
519

 
$
554

 
$
550

 
$
7,163

Ratio of Earnings to Fixed Charges (4)
2.58

 
—

 
—

 
—

 
2.33

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends (5)(6)
2.58

 
—

 
—

 
—

 
—


(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.