Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

Debt consisted of the following (in millions):

	June 30, 2023		December 31, 2022
SHORT-TERM DEBT
PAA senior notes:
2.85% senior notes due January 2023 (1)	$	—	$	400
3.85% senior notes due October 2023	700		700
Other	9		59
Total short-term debt	709		1,159
LONG-TERM DEBT
PAA senior notes, net of unamortized discounts and debt issuance costs of $44 and $46, respectively	7,239		7,237
Other	49		50
Total long-term debt	7,288		7,287
Total debt (2)	$	7,997	$	8,446

(1)These senior notes were redeemed on January 31, 2023.

(2)PAA’s fixed-rate senior notes had a face value of approximately $8.0 billion and $8.4 billion as of June 30, 2023 and December 31, 2022, respectively. We estimated the aggregate fair value of these notes as of June 30, 2023 and December 31, 2022 to be approximately $7.3 billion and $7.6 billion, respectively. PAA’s fixed-rate senior notes are traded among institutions, and these trades are routinely published by a reporting service. Our determination of fair value is based on reported trading activity near the end of the reporting period. The fair value estimate for PAA’s senior notes is based upon observable market data and is classified in Level 2 of the fair value hierarchy.

Borrowings and Repayments

Total borrowings under the PAA credit facilities and commercial paper program for the six months ended June 30, 2023 and 2022 were approximately $1.5 billion and $16.4 billion, respectively. Total repayments under the PAA credit facilities and commercial paper program were approximately $1.5 billion and $16.3 billion for the six months ended June 30, 2023 and 2022, respectively. The variance in total gross borrowings and repayments is impacted by various business and financial factors including, but not limited to, the timing, average term and method of general partnership borrowing activities.

On January 31, 2023, PAA redeemed its 2.85%, $400 million senior notes due January 2023.

Letters of Credit

In connection with our merchant activities, we provide certain suppliers with irrevocable standby letters of credit to secure our obligation for the purchase and transportation of crude oil and NGL. Additionally, we issue letters of credit to support insurance programs, derivative transactions, including hedging-related margin obligations, and construction activities. At June 30, 2023 and December 31, 2022, we had outstanding letters of credit of $127 million and $102 million, respectively.