Debt and Interest Expense

3 Months Ended

Mar. 31, 2013

Disclosure Text Block [Abstract]

Debt and Interest Expense

8.  Debt and Interest Expense

DebtThe Company's outstanding debt is senior unsecured, except for borrowings, if any, under the $5.0 billion Facility. The following summarizes the Company's outstanding debt:

	March 31,		December 31,
millions	2013		2012
Total debt at face value	$	15,337	$	14,952
Net unamortized discounts and premiums (1)		(1,674)		(1,683)
Total long-term debt	$	13,663	$	13,269

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

Anadarko's $500 million aggregate principal amount of 7.625% Senior Notes due March 2014 and Zero-Coupon Senior Notes due 2036, which can be put to the Company in October 2013 for the then-accreted value, are classified as long-term debt on the Company's Consolidated Balance Sheets. The Company has the ability and intent to refinance the obligationsusing long-term debt.

Fair ValueThe 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. The estimated fair value of the Company's total borrowings was $16.5 billion at March 31, 2013, and $16.2 billion at December 31, 2012.

Debt ActivityThe following summarizes the Company's debt activity during the three months ended March 31, 2013:

		Carrying
millions		Value		Description
Balance at December 31, 2012		$	13,269
	Borrowings		385	WES revolving credit facility
	Other, net		9	Amortization of debt discounts and premiums
Balance at March 31, 2013		$	13,663

WES BorrowingsAt March 31, 2013, WES was in compliance with all covenants contained in its five-year, $800 million senior unsecured revolving credit facility maturing in March 2016, had outstanding borrowings of $385 million at an interest rate of 1.70%, and had available borrowing capacity of $402 million ($800 million maximum capacity, less $385 million of outstanding borrowings and $13 million of outstanding letters of credit).

Interest ExpenseThe following summarizes interest expense:

	Three Months Ended
	March 31,
millions	2013		2012
Current debt, long-term debt, and other	$	232	$	250
Capitalized interest		(68)		(64)
Interest expense	$	164	$	186