Debt (Notes)

9 Months Ended

Sep. 30, 2020

3. Debt

The following table provides information on the principal amount of our outstanding debt balances:


	September 30, 2020		December 31, 2019
	(In millions, unless otherwise stated)
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
5.30%, due September 2020(d)	—		600
6.50%, due September 2020(d)	—		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(e)	—		100
Current portion of other debt	46		45
Total current portion of debt	2,057		2,477

Long-term debt (excluding current portion)
Senior notes	30,578		30,164
EPC Building, LLC, promissory note, 3.967%, due 2020 through 2035	369		381

Trust I preferred securities, 4.75%, due March 2028	110		110
Other	224		228
Total long-term debt	31,281		30,883
Total debt(f)	$	33,338	$	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 partially 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)In April 2020, we repaid $535 million of maturing senior notes.

(d)In September 2020, we repaid a combined $949 million of maturing senior notes using proceeds from our newly issued senior notes.

(e)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.

(f)Excludes our “Debt fair value adjustments” which, as of September 30, 2020 and December 31, 2019, increased our total debt balances by $1,379 million and $1,032 million, respectively.

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 August 5, 2020, we issued in a registered offering two series of senior notes consisting of $750 million aggregate principal amount of 2.00% senior notes due 2031 and $500 million aggregate principal amount of 3.25% senior notes due 2050 and received combined net proceeds of $1,226 million.

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 $991 million.

The senior notes issued in August 2020 and February 2020 are guaranteed through the cross guarantee agreement discussed above.

Credit Facility

As of September 30, 2020, we had no borrowings outstanding under our $4.0 billion credit facility, no borrowings outstanding under our commercial paper program and $81 million in letters of credit. Our availability under our credit facility as of September 30, 2020 was $3,919 million. As of September 30, 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:


	September 30, 2020						December 31, 2019
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
	(In millions)
Total debt	$	34,717	$	38,253	$	34,392	$	38,016

We used Level 2 input values to measure the estimated fair value of our outstanding debt balance as of both September 30, 2020 and December 31, 2019.