8. Debt

Debt Activity The following summarizes the Company’s borrowing activity, after eliminating the effect of intercompany transactions, during the three months ended March 31, 2019:



		Carrying Value
millions	Anadarko ⁽¹⁾				WES				Anadarko Consolidated				Description
Balance at December 31, 2018		$	11,354			$	4,815			$	16,169
Borrowings
		—				2,000				2,000			WES 364-Day Facility
		—				420				420			WES RCF
Repayments
		(600		)		—				(600		)	8.700 % Senior Notes due 2019
		(300		)		—				(300		)	6.950 % Senior Notes due 2019
		—				(28		)		(28		)	WGP RCF
Other, net		12				1				13			Amortization of discounts, premiums, and debt issuance costs
Balance at March 31, 2019		$	10,466			$	7,208			$	17,674


⁽¹⁾	Excludes WES.

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



millions	Anadarko ⁽¹⁾				WES				Anadarko Consolidated
March 31, 2019
Total borrowings at face value		$	11,893			$	7,260			$	19,153
Net unamortized discounts, premiums, and debt issuance costs ⁽²⁾		(1,427		)		(52		)		(1,479		)
Total borrowings ⁽³⁾		10,466				7,208				17,674
Finance lease liabilities		250				—				250
Less short-term debt		21				2,000				2,021
Total long-term debt		$	10,695			$	5,208			$	15,903

December 31, 2018
Total borrowings at face value		$	12,793			$	4,868			$	17,661
Net unamortized discounts, premiums, and debt issuance costs ⁽²⁾		(1,439		)		(53		)		(1,492		)
Total borrowings ⁽³⁾		11,354				4,815				16,169
Finance lease liabilities		248				—				248
Less short-term debt		919				28				947
Total long-term debt		$	10,683			$	4,787			$	15,470


⁽¹⁾	Excludes WES.


⁽²⁾	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.


⁽³⁾	The Company’s outstanding borrowings, except for borrowings under the WGP RCF, are senior unsecured.

8. Debt (Continued)

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 $19.3 billion at March 31, 2019, and $16.8 billion at December 31, 2018.

Anadarko Debt (Excluding WES) In January 2019, the $2.0 billion 364-day senior unsecured RCF (364-Day Facility) expired. At March 31, 2019, the Company had a $3.0 billion senior unsecured RCF maturing in January 2023 (APC RCF). At March 31, 2019, Anadarko had no outstanding borrowings under the APC RCF and was in compliance with all covenants.

In March 2019, Anadarko repaid $600 million of 8.700% Senior Notes at maturity and redeemed its $300 million of 6.950% Senior Notes due June 2019.

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 of the outstanding Zero Coupons, which, if put in whole, would be $942 million at the next put date in October 2019. Anadarko’s Zero Coupons were classified as long-term debt on the Company’s Consolidated Balance Sheet at March 31, 2019, as the Company has the ability and intent to refinance these obligations using long-term debt, should a put be exercised.

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 9—Equity-Method Investments in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

WES and WGP Debt Effective on February 15, 2019, WES amended the maturity date of its senior unsecured RCF from February 2023 to February 2024, and upon completion of the WES Merger, expanded the borrowing capacity from $1.5 billion to $2.0 billion (WES RCF). During the three months ended March 31, 2019, WES borrowed $420 million under its RCF, which was used for general partnership purposes. At March 31, 2019, WES had outstanding borrowings under its RCF of $640 million at an interest rate of 3.79%, outstanding letters of credit of $5 million, available borrowing capacity of $1.4 billion, and was in compliance with all covenants.

In February 2019, WES borrowed $2.0 billion under its 364-day senior unsecured credit facility (WES 364-Day Facility) to fund substantially all of the cash portion of the consideration under the WES midstream asset contribution and sale and the payment of related transaction costs. The WES 364-Day Facility will mature on February 27, 2020, the day prior to the one-year anniversary of the completion of the WES Merger. Net cash proceeds received from future asset sales and debt or equity offerings by WES must be used to repay amounts outstanding under the WES 364-Day Facility. At March 31, 2019, WES had outstanding borrowings under its WES 364-Day Facility of $2.0 billion at an interest rate of 3.87% and was in compliance with all covenants. WES intends to refinance the obligations under the 364-Day Facility prior to its maturity in February 2020.

In March 2019, the $35 million senior secured RCF (WGP RCF) matured following the completion of the WES Merger. During the three months ended March 31, 2019, WES made repayments of $28 million for the WGP RCF.

See Note 1—Summary of Significant Accounting Policies for additional information related to the WES Merger.