Debt and Interest Expense

6 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Debt and Interest Expense

8. Debt and Interest Expense

Debt    The Company’s outstanding debt is senior unsecured, except for borrowings, if any, under the $5.0 billion Facility. The following summarizes the Company’s outstanding debt:

	June 30,			December 31,
millions	2013			2012
Total debt at face value	$	15,202		$	14,952
Net unamortized discounts and premiums (1)	(1,664		)	(1,683		)
Total long-term debt	$	13,538		$	13,269

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⁽¹⁾  Unamortized discounts and premiums are amortized over the term of the related debt.

       Anadarko’s $500 million aggregate principal amount of 7.625% Senior Notes due March 2014, $275 million aggregate principal amount of 5.750% Senior Notes due June 2014, and Zero-Coupon Senior Notes due 2036, which can be put to the Company in October 2013 for the then-accreted value, are classified as long-term debt on the Company’s Consolidated Balance Sheets, as the Company has the ability and intent to refinance these obligations using long-term debt.

Fair Value    The Company uses a market approach to determine fair value of its fixed-rate debt using observable market data, which results in a Level 2 fair-value measurement. The carrying amount of floating-rate debt approximates fair value as the interest rates are variable and reflective of market rates. The estimated fair value of the Company’s total borrowings was $15.6 billion at June 30, 2013, and $16.2 billion at December 31, 2012.

Debt Activity    The following summarizes the Company’s debt activity during the six months ended June 30, 2013:

	Carrying
millions	Value			Description
Balance at December 31, 2012	$	13,269
Borrowings	385			WES revolving credit facility
Other, net	9			Amortization of debt discounts and premiums
Balance at March 31, 2013	$	13,663
Borrowings	110			WES revolving credit facility
Repayments	(245		)	WES revolving credit facility
Other, net	10			Amortization of debt discounts and premiums
Balance at June 30, 2013	$	13,538

WES Borrowings    At June 30, 2013, WES was in compliance with all covenants contained in its five-year, $800 million senior unsecured revolving credit facility maturing in March 2016 (RCF), had outstanding borrowings under the RCF of $250 million at an interest rate of 1.70%, and had available borrowing capacity of $537 million ($800 million maximum capacity, less $250 million of outstanding borrowings and $13 million of outstanding letters of credit).

Interest Expense    The following summarizes interest expense:

	Three Months Ended   June 30,						Six Months Ended   June 30,
millions	2013			2012			2013			2012
Current debt, long-term debt, and other	$	238		$	236		$	470		$	486
Capitalized interest	(66		)	(46		)	(134		)	(110		)
Interest expense	$	172		$	190		$	336		$	376