Debt and Financing Costs

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt and Financing Costs

6. DEBT AND FINANCING COSTS

The following table presents the carrying amounts and estimated fair values of the Company’s outstanding debt:

	September 30, 2014				December 31, 2013
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
	(In millions)
Uncommitted credit lines	$	20	$	20	$	53	$	53
Commercial paper		1,228		1,228		—		—
Notes and debentures		9,674		10,463		9,672		10,247
Total Debt	$	10,922	$	11,711	$	9,725	$	10,300

The Company’s debt is recorded at the carrying amount, net of unamortized discount, on its consolidated balance sheet. The carrying amount of the Company’s commercial paper and uncommitted credit facilities and overdraft lines approximates fair value because the interest rates are variable and reflective of market rates. Apache uses a market approach to determine the fair value of its notes and debentures using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement).

As of September 30, 2014, the Company had unsecured committed revolving credit facilities totaling $3.3 billion, of which $1.0 billion matures in August 2016 and $2.3 billion matures in June 2018 pursuant to a one-year extension approved in May 2014 under the terms of the $2.3 billion facilities. The facilities consist of a $1.7 billion facility and $1.0 billion facility for the U.S., a $300 million facility for Australia, and a $300 million facility for Canada. As of September 30, 2014, available borrowing capacity under the Company’s credit facilities was $2.1 billion. The Company’s committed credit facilities are used to support Apache’s commercial paper program.

The Company has available a $3.0 billion commercial paper program, which generally enables Apache to borrow funds for up to 270 days at competitive interest rates. The commercial paper program is fully supported by available borrowing capacity under our committed credit facilities. As of September 30, 2014, the Company had $1.2 billion outstanding in commercial paper. There was no outstanding commercial paper as of December 31, 2013.

As of September 30, 2014, the Company had $20 million of current debt outstanding borrowed on uncommitted credit facilities and overdraft lines, compared with $53 million as of December 31, 2013.

Financing Costs, Net

The following table presents the components of Apache’s financing costs, net:

	For the Quarter Ended						For the Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(In millions)
Interest expense	$	126		$	142		$	374		$	429
Amortization of deferred loan costs		2			2			5			6
Capitalized interest		(85	)		(91	)		(270	)		(268	)
Interest income		(2	)		(3	)		(6	)		(10	)
Financing costs, net	$	41		$	50		$	103		$	157