DEBT AND FINANCING COSTS

3 Months Ended

Mar. 31, 2019

The following table presents the carrying value of the Company’s debt as of March 31, 2019 and December 31, 2018:



	March 31, 2019			December 31, 2018
	(In millions)
Notes and debentures before unamortized discount and debt issuance costs	$	8,299		$	8,299
Commercial paper	159			—
Finance lease obligations	68			40
Unamortized discount	(43		)	(44		)
Debt issuance costs	(50		)	(51		)
Total debt	8,433			8,244
Current maturities	(339		)	(151		)
Long-term debt	$	8,094		$	8,093

As of March 31, 2019, current debt included $150 million of 7.625% senior notes due July 1, 2019, $159 million of commercial paper, and $30 million of finance lease obligations. As of December 31, 2018, current debt included $150 million of 7.625% senior notes due July 1, 2019 and $1 million of finance lease obligations.

The fair value of the Company’s notes and debentures was $8.3 billion and $7.8 billion as of March 31, 2019 and December 31, 2018, respectively. When recorded, the carrying amount of the Company’s commercial paper, committed bank facilities, and uncommitted bank 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).

In March 2018, the Company entered into a revolving credit facility with commitments totaling $4.0 billion. In March 2019, the term of this facility was extended by one year to March 2024 (subject to Apache’s remaining one-year extension option) pursuant to Apache’s exercise of an extension option. The Company can increase commitments up to $5.0 billion by adding new lenders or obtaining the consent of any increasing existing lenders. The facility includes a letter of credit subfacility of up to $3.0 billion, of which $2.08 billion was committed as of March 31, 2019. The facility is for general corporate purposes, and committed borrowing capacity fully supports Apache’s commercial paper program. As of March 31, 2019, letters of credit aggregating approximately £3.1 million and no borrowings were outstanding under this facility.

The Company’s $3.5 billion commercial paper program, which is subject to market availability, facilitates Apache borrowing funds for up to 270 days at competitive interest rates. As of March 31, 2019, the Company had $159 million of commercial paper outstanding.

In November 2018, Altus Midstream LP, an indirectly controlled subsidiary of Apache, entered into a revolving credit facility for general corporate purposes that matures in November 2023 (subject to Altus Midstream LP’s two, one-year extension options). The agreement for this facility provides aggregate commitments from a syndicate of banks of $450 million until (i) the consolidated net income of Altus Midstream LP and its restricted subsidiaries, as adjusted pursuant to the agreement, for three consecutive calendar months equals or exceeds $175 million on an annualized basis and (ii) Altus Midstream LP has raised at least $250 million of additional capital (such period, the Initial Period). Following the Initial Period, the aggregate commitments equal $800 million. All aggregate commitments include a letter of credit subfacility of up to $100 million and a swingline loan subfacility of up to $100 million. After the Initial Period, Altus Midstream LP may increase commitments up to an aggregate $1.5 billion by adding new lenders or obtaining the consent of any increasing existing lenders. As of March 31, 2019, no borrowings or letters of credit were outstanding under this facility. The Altus Midstream LP credit facility is unsecured and is not guaranteed by Apache or any of Apache’s other subsidiaries.

Financing Costs, Net

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



	For the Quarter Ended March 31,
	2019			2018
	(In millions)
Interest expense	$	107		$	112
Amortization of deferred loan costs	2			5
Capitalized interest	(8		)	(12		)
Interest income	(4		)	(6		)
Financing costs, net	$	97		$	99