Debt The following presents the Company's outstanding debt and capital lease obligations. All of the Company's outstanding debt is senior unsecured.

	September 30, 2011						December 31, 2010
			Carrying		Fair				Carrying		Fair
millions	Principal		Value		Value		Principal		Value		Value
Long-term notes and debentures	$	13,952	$	12,226	$	13,752	$	14,237	$	12,488	$	13,459
WES borrowings		500		494		503		299		299		299
Total borrowings	$	14,452	$	12,720	$	14,255	$	14,536	$	12,787	$	13,758
Capital lease obligations		229		229		N/A		226		226		N/A
Less: Current portion of long-term debt		141		141		134		289		291		296
Total long-term debt	$	14,540	$	12,808	$	14,121	$	14,473	$	12,722	$	13,462

Debt Activity The following presents the Company's debt activity during the nine months ended September 30, 2011.


				Carrying
millions		Principal		Value		Description
Balance at December 31, 2010		$	14,536	$	12,787
	Borrowings		560		560	WES credit facility
	Repayments⁽¹⁾		(389)		(389)	WES credit facility and WES term loan
	Other, net		—		8	Changes in debt premium or discount
Balance at March 31, 2011		$	14,707	$	12,966
	Issuance		500		494	WES 5.375% Senior Notes due 2021
	Repayments⁽¹⁾		(470)		(470)	WES credit facility
	Other, net		—		8	Changes in debt premium or discount
Balance at June 30, 2011		$	14,737	$	12,998
	Borrowings		10		10	WES credit facility
	Repayments⁽¹⁾		(285)		(285)	6.875% Senior Notes due 2011
			(10)		(10)	WES credit facility
	Other, net		—		7	Changes in debt premium or discount
Balance at September 30, 2011		$	14,452	$	12,720

(1) Debt repayment activity includes both scheduled repayments and retirements before scheduled maturity.

Anadarko Revolving Credit Facility and Letter of Credit Facility During the third quarter of 2011, the Company entered into an agreement with a financial institution to provide up to $400 million of letters of credit (the LOC Facility). Compensating balances deposited at the financial institution provide for reduced fees under the LOC Facility. These compensating balances may be withdrawn at any time, resulting in higher fees under the LOC Facility. At September 30, 2011, cash and cash equivalents includes $325 million of demand deposits serving as compensating balances. The LOC Facility also requires the Company to maintain a senior debt revolving credit facility with minimum commitments of at least $1.0 billion and the availability to issue letters of credit of at least $400 million.

In August 2011, the Company amended the $5.0 billion Facility to reduce the maintenance costs and to lower the interest rates under the facility. At September 30, 2011, the $5.0 billion Facility was undrawn with available capacity of $4.6 billion ($5.0 billion undrawn capacity, less $400 million of letter-of-credit capacity maintained pursuant to the terms of the LOC Facility).

WES Revolving Credit Facility During the first quarter of 2011, WES borrowed $310 million under its $450 million senior unsecured revolving credit facility, primarily to fund the Platte Valley acquisition. In March 2011, WES entered into a five-year, $800 million senior unsecured revolving credit facility (RCF), which amended and restated the $450 million senior unsecured revolving credit facility, and borrowed $250 million under the RCF to repay a senior unsecured term loan. Also during the first quarter of 2011, WES repaid $139 million of borrowings under its RCF primarily from proceeds related to its public offering of four million common units, which raised net proceeds of $130 million. During the second quarter of 2011, WES repaid the outstanding RCF borrowings with net proceeds from the public offering of $500 million 5.375% Senior Notes due 2021. At September 30, 2011, WES was in compliance with all covenants contained in the RCF, had no outstanding borrowings under the RCF, and had the full $800 million of RCF borrowing capacity available.

Interest Expense The following summarizes the amounts included in interest expense.


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
millions		2011		2010		2011		2010
Current debt, long-term debt, and other⁽¹⁾		$	245	$	235	$	743	$	642
Loss on early debt retirements and commitment
	termination⁽²⁾		—		17		—		89
Capitalized interest			(39)		(34)		(101)		(89)
Interest expense		$	206	$	218	$	642	$	642

(1) Included in the three and nine months ended September 30, 2010, is $7 million and $9 million, respectively, of unamortized debt issuance costs associated with the retirement of the midstream subsidiary note payable to a related party (Midstream Subsidiary Note).

(2) Loss on early debt retirements in 2010 is the result of repurchasing $1.0 billion aggregate principal amount of debt due 2011 and 2012. Also included in the three and nine months ended September 30, 2010, is $17 million for commitment and structuring costs associated with a contemplated term-loan facility.