8. Debt

Debt The following summarizes the Company’s outstanding debt, including capital lease obligations, after eliminating the effect of intercompany transactions:



millions	WES			WGP ⁽¹⁾		Anadarko ⁽²⁾			Anadarko Consolidated
March 31, 2017
Total borrowings at face value	$	3,120		$	28	$	13,550		$	16,698
Net unamortized discounts, premiums, and debt issuance costs ⁽³⁾	(28		)	—		(1,587		)	(1,615		)
Total borrowings ⁽⁴⁾	3,092			28		11,963			15,083
Capital lease obligations	—			—		243			243
Less short-term debt	—			—		42			42
Total long-term debt	$	3,092		$	28	$	12,164		$	15,284

December 31, 2016
Total borrowings at face value	$	3,120		$	28	$	13,558		$	16,706
Net unamortized discounts, premiums, and debt issuance costs ⁽³⁾	(29		)	—		(1,599		)	(1,628		)
Total borrowings ⁽⁴⁾	3,091			28		11,959			15,078
Capital lease obligations	—			—		245			245
Less short-term debt	—			—		42			42
Total long-term debt	$	3,091		$	28	$	12,162		$	15,281

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⁽¹⁾	Excludes WES.


⁽²⁾	Excludes WES and WGP.


⁽³⁾	Unamortized discounts, premiums, and debt issuance costs are amortized over the term of the related debt. Debt issuance costs related to RCFs are included in other current assets and other assets on the Company’s Consolidated Balance Sheets.


⁽⁴⁾	The Company’s outstanding borrowings, except for borrowings under the WGP RCF, are senior unsecured.

Fair Value The Company uses a market approach to determine the 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 $17.0 billion at March 31, 2017, and $17.1 billion at December 31, 2016.

Anadarko Borrowings Anadarko has a $3.0 billion five-year senior unsecured RCF maturing in January 2021 (Five-Year Facility) and a $2.0 billion 364-day senior unsecured RCF (364-Day Facility). In January 2017, the Company extended the maturity date of the 364-Day Facility until January 2018. At March 31, 2017, the Company had no outstanding borrowings under the Five-Year Facility or the 364-Day Facility and was in compliance with all related covenants.

Anadarko’s Zero Coupons can be put to the Company in October of each year, in whole or in part, for the then-accreted value, which will be $883 million at the next put date in October 2017. Anadarko’s Zero Coupons were classified as long-term debt on the Company’s Consolidated Balance Sheet at March 31, 2017, as the Company has the ability and intent to refinance these obligations using long-term debt, should the put be exercised.

In January 2015, the Company initiated a commercial paper program, which allows for a maximum of $3.0 billion of unsecured commercial paper notes and is supported by the Five-Year Facility. The maturities of the commercial paper notes may vary, but may not exceed 397 days. Due to the Company’s below-investment-grade credit rating from Moody’s, the Company currently does not have access to the commercial paper market and had no outstanding borrowings under the commercial paper program at March 31, 2017.

8. Debt (Continued)

The Company also has notes payable related to its ownership of certain noncontrolling mandatorily redeemable interests that are not included in the Company’s reported debt balance and do not affect consolidated interest expense. See Note 8—Equity Method Investments in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

WES and WGP Borrowings At March 31, 2017, WES was in compliance with all related covenants contained in its $1.2 billion five-year senior unsecured RCF maturing in February 2020 (WES RCF), which is expandable to $1.5 billion. At March 31, 2017, WES had no outstanding borrowings under its RCF, had outstanding letters of credit of $5 million, and had available borrowing capacity of $1.195 billion.

At March 31, 2017, WGP was in compliance with all related covenants contained in its $250 million three-year senior secured RCF maturing in March 2019 (WGP RCF), which is expandable to $500 million subject to receiving increased or new commitments from lenders and the satisfaction of certain other conditions. Obligations under the WGP RCF are secured by a first priority lien on all of WGP’s assets (not including the consolidated assets of WES) as well as all equity interests owned by WGP. At March 31, 2017, WGP had outstanding borrowings under its RCF of $28 million at an interest rate of 2.99% and had available borrowing capacity of $222 million.