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Debt
9 Months Ended
Sep. 30, 2012
Debt [Abstract]  
Debt

Note 9—Debt

 

We have two commercial paper programs supported by our $7.5 billion revolving credit facility: the ConocoPhillips $6.35 billion program, primarily a funding source for short-term working capital needs, and the ConocoPhillips Qatar Funding Ltd. $1.15 billion commercial paper program, which is used to fund commitments relating to the QG3 Project. Commercial paper maturities are generally limited to 90 days.

 

At both September 30, 2012, and December 31, 2011, we had no direct outstanding borrowings under our revolving credit facilities, with no letters of credit issued as of September 30, 2012, and $40 million as of December 31, 2011. In addition, under the two commercial paper programs, there was $1,540 million of commercial paper outstanding at September 30, 2012, compared with $1,128 million at December 31, 2011. Since we had $1,540 million of commercial paper outstanding and had issued no letters of credit, we had access to $6.0 billion in borrowing capacity under our revolving credit facilities at September 30, 2012.

 

At September 30, 2012, we classified $967 million of short-term debt as long-term debt, based on our ability and intent to refinance the obligation on a long-term basis under our revolving credit facilities.

 

During the first nine months of 2012, the following debt instruments were repaid prior to their maturity:

 

  • The $400 million 4.4% Notes due 2013.
  • $1,100 million of the $1,500 million 4.75% Notes due 2014.

 

We incurred a before-tax loss on redemption of $79 million, consisting of a make-whole premium and unamortized issuance costs.