Debt (Notes)

3 Months Ended

Mar. 31, 2020

The following table provides information on the principal amount of our outstanding debt balances (in millions):



	March 31, 2020		December 31, 2019
Current portion of debt
$4 billion credit facility due November 16, 2023	$	—	$	—
Commercial paper notes(a)	—		37
Current portion of senior notes
6.85%, due February 2020(b)	—		700
6.50%, due April 2020(c)	535		535
5.30%, due September 2020	600		600
6.50%, due September 2020	349		349
5.00%, due February 2021	750		—
3.50%, due March 2021	750		—
5.80%, due March 2021	400		—
Trust I preferred securities, 4.75%, due March 2028	111		111
Kinder Morgan G.P. Inc, $1,000 Liquidation Value Series A Fixed-to-Floating Rate Term Cumulative Preferred Stock, due August 2057(d)	—		100
Current portion of other debt	45		45
Total current portion of debt	3,540		2,477

Long-term debt (excluding current portion)
Senior notes	29,242		30,164
EPC Building, LLC, promissory note, 3.967%, due 2020 through 2035	377		381
Trust I preferred securities, 4.75%, due March 2028	110		110
Other	226		228
Total long-term debt	29,955		30,883
Total debt(e)	$	33,495	$	33,360

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(a)	Weighted average interest rate on borrowings outstanding as of December 31, 2019 was 1.90%.

(b)

On January 9, 2020, we sold the approximate 25 million shares of Pembina Pipeline Corporation (Pembina) common equity that we received as consideration for the sale of KML. We received proceeds of approximately $907 million ($764 million after tax) for the sale of the Pembina shares, which were used to repay debt that matured in February 2020. The fair value of the Pembina common equity of$925 million as of December 31, 2019 was reported as “Marketable securities at fair value” in the accompanying consolidated balance sheet.


(c)	As of March 31, 2020, funds for the repayment of these maturing notes, and associated accrued interest, were held in escrow and included in the accompanying consolidated balance sheet within “Restricted deposits.”


(d)	In December 2019, we notified the holder of our intent to redeem these securities. As our notification was irrevocable, the outstanding balance was classified as current in our accompanying consolidated balance sheet as of December 31, 2019. We redeemed these securities, including accrued dividends, on January 15, 2020.

(e)

Excludes our “Debt fair value adjustments” which, as of March 31, 2020 and December 31, 2019, increased our total debt balances by $1,450 million and $1,032 million, respectively. In addition to all unamortized debt discount/premium amounts, debt issuance costs and purchase accounting on our debt balances, our debt fair value adjustments also include amounts associated with the offsetting entry for hedged debt and any unamortized portion of proceeds received from the early termination of interest rate swap agreements.

We and substantially all of our wholly owned domestic subsidiaries are parties to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement.

On February 24, 2020, TGP, a wholly owned subsidiary, issued in a private placement $1,000 million aggregate principal amount of its 2.90% senior notes due 2030 and received net proceeds of $994 million. These notes are guaranteed through the cross guarantee agreement discussed above.

Credit Facility

As of March 31, 2020, we had no borrowings outstanding under our $4.0 billion credit facility, no borrowings outstanding under our commercial paper program and $83 million in letters of credit. Our availability under our credit facility as of March 31, 2020 was $3,917 million. As of March 31, 2020, we were in compliance with all required covenants.

Fair Value of Financial Instruments

The carrying value and estimated fair value of our outstanding debt balances are disclosed below (in millions):



	March 31, 2020				December 31, 2019
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Total debt	$	34,945	$	34,198	$	34,392	$	38,016

We used Level 2 input values to measure the estimated fair value of our outstanding debt balance as of both March 31, 2020 and December 31, 2019.