| Schedule of Long-Term Debt Instruments |
The table below summarizes the Company's outstanding debt.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2022 | | December 31, 2021 | | | Principal Value | | Carrying Value (a) | | | | Principal Value | | Carrying Value (a) | | | | | | | | | | | | | | | | | (Thousands) | | Credit Facility expiring June 28, 2027 | $ | 100,000 | | | $ | 100,000 | | | | | $ | — | | | $ | — | | | | | Senior notes: | | | | | | | | | | | | 3.00% notes due October 1, 2022 | — | | | — | | | | | 568,823 | | | 567,909 | | | | 7.42% series B notes due 2023 | 10,000 | | | 10,000 | | | | | 10,000 | | | 10,000 | | | | 6.625% notes due February 1, 2025 (b) | 995,315 | | | 990,848 | | | | | 1,000,000 | | | 994,643 | | | | 1.75% convertible notes due May 1, 2026 | 434,856 | | | 425,225 | | | | | 499,991 | | | 487,543 | | | | 3.125% notes due May 15, 2026 | 497,694 | | | 491,661 | | | | | 500,000 | | | 493,157 | | | | 7.75% debentures due July 15, 2026 | 115,000 | | | 112,970 | | | | | 115,000 | | | 112,721 | | | | 3.90% notes due October 1, 2027 | 1,250,000 | | | 1,243,919 | | | | | 1,250,000 | | | 1,243,340 | | | | 5.00% notes due January 15, 2029 | 349,565 | | | 344,771 | | | | | 350,000 | | | 344,835 | | | | 7.500% notes due February 1, 2030 (b) | 737,650 | | | 732,498 | | | | | 750,000 | | | 744,417 | | | | 3.625% notes due May 15, 2031 | 500,000 | | | 493,060 | | | | | 500,000 | | | 492,669 | | | | | Note payable to EQM | 97,117 | | | 97,117 | | | | | 99,838 | | | 99,838 | | | | | Total debt | 5,087,197 | | | 5,042,069 | | | | | 5,643,652 | | | 5,591,072 | | | | | Less: Current portion of debt (c) | 450,531 | | | 440,900 | | | | | 1,074,332 | | | 1,060,970 | | | | | Long-term debt | $ | 4,636,666 | | | $ | 4,601,169 | | | | | $ | 4,569,320 | | | $ | 4,530,102 | | | |
(a)For the Company's credit facility and note payable to EQM, the principal value represents the carrying value. For all other debt, the principal value less the unamortized debt issuance costs and debt discounts represents the carrying value. (b)Interest rates for this tranche of the Company's senior notes fluctuate based on changes to the credit ratings assigned to the Company's senior notes by Moody's, S&P and Fitch. Interest rates on the Company's other outstanding senior notes do not fluctuate based on changes to the credit ratings assigned to its senior notes by Moody's, S&P and Fitch. (c)As of June 30, 2022, the current portion of debt includes the 7.42% series B notes, the 1.75% convertible notes (described below) and a portion of the note payable to EQM. As of December 31, 2021, the current portion of debt includes the 3.00% notes, the 1.75% convertible notes and a portion of the note payable to EQM.
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| Schedule of Debt Instrument Redemption |
The Company redeemed or repurchased the following debt during the six months ended June 30, 2022. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Debt Tranche | | Principal (a) | | Premiums/(Discounts) (a) | | Accrued but Unpaid Interest | | Total Cost | | | | | | | | | | | | (Thousands) | 3.00% notes due October 1, 2022 | | $ | 568,823 | | | $ | 5,546 | | | $ | 7,150 | | | $ | 581,519 | | 6.625% notes due February 1, 2025 | | 4,685 | | | 142 | | | 130 | | | 4,957 | | 1.75% convertible notes due May 1, 2026 | | 65,096 | | | 101,879 | | | 186 | | | 167,161 | | 3.125% notes due May 15, 2026 | | 2,306 | | | (143) | | | 10 | | | 2,173 | | 5.00% notes due January 15, 2029 | | 435 | | | (15) | | | 10 | | | 430 | | 7.500% notes due February 1, 2030 | | 12,350 | | | 877 | | | 387 | | | 13,614 | |
(a)Of the total principal repurchased and premiums recorded during the six months ended June 30, 2022, approximately $80 million and $94 million, respectively, were accrued but not yet paid as of June 30, 2022 due to the timing of settlements.
The Company redeemed or repurchased the following debt during the period beginning July 1, 2022 and ending July 26, 2022. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Debt Tranche | | Principal | | Premiums/(Discounts) | | Accrued but Unpaid Interest | | Total Cost | | | | | | | | | | | | (Thousands) | 6.625% notes due February 1, 2025 | | $ | 79,721 | | | $ | 2,904 | | | $ | 2,491 | | | $ | 85,116 | | 1.75% convertible notes due May 1, 2026 | | 20,000 | | | 26,027 | | | 64 | | | 46,091 | | 3.125% notes due May 15, 2026 | | 34,340 | | | (1,907) | | | 177 | | | 32,610 | | 3.90% notes due October 1, 2027 | | 15,567 | | | (643) | | | 188 | | | 15,112 | | 5.00% notes due January 15, 2029 | | 13,111 | | | (430) | | | 185 | | | 12,866 | | 7.500% notes due February 1, 2030 | | 7,650 | | | 551 | | | 253 | | | 8,454 | | 3.625% notes due May 15, 2031 | | 4,835 | | | (601) | | | 28 | | | 4,262 | |
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| Schedule of Convertible Debt |
The following table summarizes Convertible Notes conversion right exercises from issuance through July 22, 2022. The Company elected to settle all such conversions by issuing to the converting holders shares of EQT common stock. | | | | | | | | | | | | | | | | | | | | | | Settlement Month | | Principal Converted | | Shares Issued | | Average Conversion Price | | | | | | | | | | (Thousands) | | | | | | September 2021 | | $ | 9 | | | 599 | | | $ | 19.64 | | | March 2022 | | 8 | | | 536 | | | 33.65 | | | April 2022 | | 26 | | | 1,742 | | | 34.78 | | | July 2022 | | 5 | | | 335 | | | 36.91 | |
The table below summarizes the net carrying value and fair value of the Convertible Notes. | | | | | | | | | | | | | June 30, 2022 | | December 31, 2021 | | | | | | (Thousands) | | Principal | $ | 434,856 | | | $ | 499,991 | | | Less: Unamortized debt issuance costs | 9,631 | | | 12,448 | | | Net carrying value of Convertible Notes | $ | 425,225 | | | $ | 487,543 | | | | | | | Fair value of Convertible Notes (a) | $ | 1,036,292 | | | $ | 854,985 | |
(a)The fair value is a Level 2 fair value measurement. See Note 4. The table below summarizes the components of interest expense related to the Convertible Notes. The effective interest rate for the Convertible Notes is 2.4%. | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2022 | | 2021 | | 2022 | | 2021 | | | | | | | | | | (Thousands) | | Contractual interest expense | $ | 2,183 | | | $ | 2,187 | | | $ | 4,370 | | | $ | 4,375 | | | Amortization of issuance costs | 687 | | | 672 | | | 1,371 | | | 1,341 | | | Total Convertible Notes interest expense | $ | 2,870 | | | $ | 2,859 | | | $ | 5,741 | | | $ | 5,716 | |
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