Debt

The following table summarizes the carrying value of our outstanding debt, excluding our debt fair value adjustments, as of March 31, 2013 and December 31, 2012 (in millions):



	March 31, 2013		December 31, 2012
Current portion of debt(a)	$	1,127	$	1,155
Long-term portion of debt	16,829		15,907
Carrying value of debt(b)	$	17,956	$	17,062

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(a)	As of March 31, 2013 and December 31, 2012, includes commercial paper borrowings of $595 million and $621 million, respectively.

(b)

Excludes debt fair value adjustments. As of March 31, 2013 and December 31, 2012, our “Debt fair value adjustments” increased our debt balances by $1,586 million and $1,698 million, respectively. In addition to all unamortized debt discount/premium amounts and purchase accounting on our debt balances, our debt fair value adjustments also include (i) amounts associated with the offsetting entry for hedged debt; and (ii) any unamortized portion of proceeds received from the early termination of interest rate swap agreements. For further information about our debt fair value adjustments, see Note 5 “Risk Management—Fair Value of Derivative Contracts.”

Changes in our outstanding debt, excluding debt fair value adjustments, during the three months ended March 31, 2013 are summarized as follows (in millions):



Debt borrowings	Interest rate		Increase / (decrease)			Cash received / (paid)
Issuances and assumptions
Senior notes due September 1, 2023(a)	3.50	%	$	600		$	598
Senior notes due March 1, 2043(a)	5.00	%	400			398
Commercial paper	variable		1,689			1,689
Kinder Morgan Altamont LLC credit facility due August 2, 2014(b)	variable		14			14
Total increases in debt			$	2,703		$	2,699

Repayments and other
Commercial paper	variable		(1,715		)	(1,715		)
Kinder Morgan Altamont LLC credit facility due August 2, 2014(b)	variable		(92		)	(92		)
Kinder Morgan Texas Pipeline, L.P. - senior notes due January 2, 2014	5.23	%	(2		)	(2		)
Total decreases in debt			$	(1,809	)	$	(1,809	)

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(a)

On February 28, 2013, we completed a public offering of $1 billion in principal amount of senior notes in two separate series, consisting of $600 million of 3.50% notes due September 1, 2023 and $400 million of 5.00% notes due March 1, 2043. We received proceeds from the issuance of the notes, after deducting the underwriting discount, of $991 million, and we used the proceeds to pay a portion of the purchase price for our drop-down transaction and to reduce the borrowings under our commercial paper program.

(b)

Our subsidiary, Kinder Morgan Altamont LLC maintains an unsecured revolving bank credit facility that matures on August 2, 2014. Effective March 31, 2013, Kinder Morgan Altamont LLC reduced the amount available for borrowing under this credit facility from $95 million to approximately $1 million. In addition, in February 2013, prior to our March 1, 2013 acquisition date, we and KMI each contributed $45 million to repay the outstanding $90 million borrowings under this credit facility, and following this repayment, Kinder Morgan Altamont LLC had no outstanding debt.

We also maintain a $2.2 billion senior unsecured revolving credit facility that matures July 1, 2016. Our credit facility can be amended to provide for borrowings of up to $2.5 billion, and borrowings under the facility can be used for general partnership purposes and as a backup for our commercial paper program. There were no borrowings under the credit facility as of March 31, 2013 or as of December 31, 2012. We had, as of March 31, 2013, $1,395 million of borrowing capacity available under our credit facility. The amount available for borrowing under our credit facility was reduced by a combined amount of $805 million, consisting of $595 million of commercial paper borrowings and $210 million of letters of credit, consisting of (i) a $100 million letter of credit that supports certain proceedings with the California Public Utilities Commission involving refined products tariff charges on the intrastate common carrier operations of our Pacific operations’ pipelines in the state of California; (ii) a combined $85 million in three letters of credit that support tax-exempt bonds; and (iii) a combined $25 million in other letters of credit supporting other obligations of us and our subsidiaries.

For additional information regarding our debt facilities and for information on our contingent debt agreements, see Note 8 “Debt” and Note 12 “Commitments and Contingent Liabilities” to our consolidated financial statements included in our 2012 Form 10-K.