Debt All of the Company's outstanding debt is senior unsecured, except for borrowings under the $5.0 billion Facility. The following presents the Company's outstanding debt:


	June 30,		December 31,
millions	2012		2011
Long-term notes and debentures	$	15,521	$	16,452
WES borrowings		1,020		500
Total debt at face value	$	16,541	$	16,952
Net unamortized discounts and premiums⁽¹⁾		(1,709)		(1,722)
Total borrowings	$	14,832	$	15,230
Less: Current portion of long-term debt		1,739		170
Total long-term debt	$	13,093	$	15,060

(1) Unamortized discounts and premiums are amortized over the term of the related debt.

Fair Value The Company uses a market approach to determine fair value of its fixed-rate debt using observable market data, which results in a Level 2 fair-value measurement. The carrying amount of floating-rate debt approximates fair value as the interest rates are variable and reflective of market rates. At June 30, 2012, and December 31, 2011, the estimated fair value of the Company's total borrowings was $17.1 billion and $17.3 billion, respectively.

Debt Activity The following presents the Company's debt activity during the six months ended June 30, 2012.


		Carrying
millions		Value		Description
Balance at December 31, 2011		$	15,230
	Borrowings		319	WES revolving credit facility
	Repayments		(131)	6.125% Senior Notes due 2012
			(40)	WES revolving credit facility
	Other, net		8	Changes in debt premium or discount
Balance at March 31, 2012		$	15,386
	Issuance		516	WES 4.00% Senior Notes due 2022
	Borrowings		55	WES revolving credit facility
	Repayments		(800)	$5.0 billion Facility
			(334)	WES revolving credit facility
	Other, net		9	Changes in debt premium or discount
Balance at June 30, 2012		$	14,832

Anadarko Revolving Credit Facility and Letter of Credit Facility At June 30, 2012, the Company was in compliance with all applicable covenants contained in the $5.0 billion Facility, had outstanding borrowings of $1.7 billion at an interest rate of 1.75%, and had available borrowing capacity of $3.2 billion ($5.0 billion maximum capacity, less $1.7 billion of outstanding borrowings and $150 million of letter-of-credit capacity required to be maintained pursuant to the terms of the LOC Facility discussed below). The Company intends to repay the outstanding borrowings under the $5.0 billion Facility with cash on hand and cash realized from the resolution of the Algeria exceptional profits tax dispute within the next year and has classified these borrowings as current portion of long-term debt on the Company's Consolidated Balance Sheet at June 30, 2012.

In 2011, the Company entered into an agreement with a financial institution to provide up to $400 million of letters of credit. In June 2012, the agreement was amended to reduce the amount of letters of credit to a maximum of $150 million (LOC Facility). Compensating balances deposited with the financial institution provide for reduced fees under the LOC Facility. These compensating balances may be withdrawn at any time, resulting in higher fees. At June 30, 2012, cash and cash equivalents includes $23 million of demand deposits serving as compensating balances for outstanding letters of credit.

WES Revolving Credit Facility In the second quarter of 2012, WES repaid all outstanding borrowings under its five-year $800 million senior unsecured revolving credit facility (RCF) with net proceeds from its public offering of $520 million aggregate principal amount of 4.00% Senior Notes due 2022. At June 30, 2012, WES was in compliance with all covenants contained in the RCF.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
millions	2012		2011		2012		2011
Current debt, long-term debt, and other	$	236	$	250	$	486	$	498
Capitalized interest		(46)		(34)		(110)		(62)
Total interest expense	$	190	$	216	$	376	$	436