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DEBT AND FINANCING COSTS
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
DEBT AND FINANCING COSTS
DEBT AND FINANCING COSTS
The following table presents the carrying value of the Company’s debt:
 
 
June 30, 2020
 
December 31, 2019
 
 
(In millions)
Notes and debentures before unamortized discount and debt issuance costs(1)
 
$
7,807

 
$
8,217

Altus credit facility(2)
 
493

 
396

Apache credit facility(2)
 
565

 
—

Finance lease obligations
 
38

 
48

Unamortized discount
 
(38
)
 
(42
)
Debt issuance costs
 
(48
)
 
(53
)
Total debt
 
8,817

 
8,566

Current maturities
 
(294
)
 
(11
)
Long-term debt
 
$
8,523

 
$
8,555


(1)
The fair values of the Company’s notes and debentures were $6.7 billion and $8.4 billion as of June 30, 2020 and December 31, 2019, respectively. Apache uses a market approach to determine the fair values of its notes and debentures using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement).
(2)
The carrying amount of borrowings on credit facilities approximates fair value because the interest rates are variable and reflective of market rates.
As of June 30, 2020, current debt included $292 million, net of discount, of 3.625% senior notes due February 1, 2021 and $2 million of finance lease obligations. As of December 31, 2019, current debt included $11 million of finance lease obligations.
During the quarter ended June 30, 2020, the Company purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $410 million for an aggregate purchase price of $267 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $147 million. These repurchases resulted in a $140 million net gain on extinguishment of debt, which is included in “Financing costs, net” in the Company’s statement of consolidated operations. The net gain includes an acceleration of related discount and debt issuance costs. The repurchases were financed by borrowings under the Company’s revolving credit facility.
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 June 30, 2020. The facility is for general corporate purposes, and available committed borrowing capacity supports Apache’s commercial paper program. As of June 30, 2020, there were $565 million of borrowings and an aggregate £641 million in letters of credit outstanding under this facility. As of December 31, 2019, there were no borrowings or letters of credit outstanding under this facility. The outstanding letters of credit were issued to support North Sea decommissioning obligations, the terms of which required such support after Standard & Poor’s reduced the Company’s credit rating from BBB to BB+ on March 26, 2020.
The Company’s $3.5 billion commercial paper program, which is subject to market availability, facilitates Apache borrowing funds for up to 270 days. As a result of recent downgrades in Apache’s credit ratings, the Company does not expect that its commercial paper program will be cost competitive with its other financing alternatives and does not anticipate using it under such circumstances. As of June 30, 2020 and December 31, 2019, the Company had no commercial paper outstanding.
In November 2018, Altus Midstream LP 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, as amended, provides aggregate commitments from a syndicate of banks of $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. 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 June 30, 2020 and December 31, 2019, there were $493 million and $396 million, respectively, of borrowings outstanding under this facility. As of June 30, 2020 and December 31, 2019, there were no letters of credit 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 June 30,
 
For the Six Months Ended June 30,
 
 
2020
 
2019
 
2020
 
2019
 
 
(In millions)
Interest expense
 
$
107

 
$
109

 
$
214

 
$
216

Amortization of debt issuance costs
 
2

 
1

 
4

 
3

Capitalized interest
 
(2
)
 
(9
)
 
(6
)
 
(17
)
Loss (gain) on extinguishment of debt
 
(140
)
 
75

 
(140
)
 
75

Interest income
 
(1
)
 
(3
)
 
(3
)
 
(7
)
Financing costs, net
 
$
(34
)
 
$
173

 
$
69

 
$
270