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v3.22.2.2

Debt | 9 Months Ended
--- | ---
Sep. 30, 2022
Debt Disclosure [Abstract] |
Debt | Note 6—Debt
| Millions of Dollars
| September 30 2022 | December 31 2021
2.4% Notes due 2022 | $ | 329 |  | 329 |
7.65% Debentures due 2023 | 78 |  | 78 |
3.35% Notes due 2024 | 426 |  | 426 |
2.125% Notes due 2024 | 900 |  | — |
8.2% Notes due 2025 | 134 |  | 134 |
3.35% Debentures due 2025 | 199 |  | 199 |
2.4% Notes due 2025 | 900 |  | — |
6.875% Debentures due 2026 | 67 |  | 67 |
4.95% Notes due 2026 | — |  | 1,250 |
7.8% Debentures due 2027 | 203 |  | 203 |
3.75% Notes due 2027 | 196 |  | 1,000 |
4.3% Notes due 2028 | 223 |  | 1,000 |
7.375% Debentures due 2029 | 92 |  | 92 |
7% Debentures due 2029 | 112 |  | 200 |
6.95% Notes due 2029 | 1,195 |  | 1,549 |
8.125% Notes due 2030 | 390 |  | 390 |
7.4% Notes due 2031 | 382 |  | 500 |
7.25% Notes due 2031 | 400 |  | 500 |
7.2% Notes due 2031 | 447 |  | 575 |
2.4% Notes due 2031 | 227 |  | 500 |
5.9% Notes due 2032 | 505 |  | 505 |
4.15% Notes due 2034 | 246 |  | 246 |
5.95% Notes due 2036 | 326 |  | 500 |
5.951% Notes due 2037 | 645 |  | 645 |
5.9% Notes due 2038 | 350 |  | 600 |
6.5% Notes due 2039 | 1,588 |  | 2,750 |
3.758% Notes due 2042 | 785 |  | — |
4.3% Notes due 2044 | 750 |  | 750 |
5.95% Notes due 2046 | 329 |  | 500 |
7.9% Debentures due 2047 | 60 |  | 60 |
4.875% Notes due 2047 | 319 |  | 800 |
4.85% Notes due 2048 | 219 |  | 600 |
3.8% Notes due 2052 | 1,100 |  | — |
4.025% Notes due 2062 | 1,770 |  | — |
Floating rate notes due 2022 at 1.06% – 1.41% during 2022 and 1.02% –1.12% during 2021 | — |  | 500 |
Marine Terminal Revenue Refunding Bonds due 2031 at 0.07% – 2.55% during 2022 and 0.04% – 0.15% during 2021 | 265 |  | 265 |
Industrial Development Bonds due 2035 at 0.07% – 2.55% during 2022 and 0.04% – 0.12% during 2021 | 18 |  | 18 |
Other | 31 |  | 35 |
Debt at face value | 16,206 |  | 17,766 |
Finance leases | 1,282 |  | 1,261 |
Net unamortized premiums, discounts and debt issuance costs | (527) |  | 907 |
Total debt | 16,961 |  | 19,934 |
Short-term debt | (664) |  | (1,200) |
Long-term debt | $ | 16,297 |  | 18,734 |
In May 2022, we redeemed $1,250 million principal amount of our 4.95 percent Notes due 2026. We paid premiums above face value of $79 million to redeem the debt and recognized a loss on debt extinguishment of $83 million which is included in the "Other expenses" line on our consolidated income statement. We also paid $500 million to retire the outstanding principal amount of the floating rate notes due 2022 at maturity. In the first quarter of 2022, we completed a debt refinancing consisting of three concurrent transactions: a tender offer to repurchase existing debt for cash; exchange offers to retire certain debt in exchange for new debt and cash; and a new debt issuance to partially fund the cash paid in the tender and exchange offers. Tender Offer In March 2022, we repurchased a total of $2,716 million aggregate principal amount of debt as listed below. We paid premiums above face value of $333 million to repurchase these debt instruments and recognized a gain on debt extinguishment of $155 million which is included in the "Other expenses" line on our consolidated income statement. •3.75% Notes due 2027 with principal of $1,000 million (partial repurchase of $804 million) •4.3% Notes due 2028 with principal of $1,000 million (partial repurchase of $777 million) •2.4% Notes due 2031 with principal of $500 million (partial repurchase of $273 million) •4.875% Notes due 2047 with principal of $800 million (partial repurchase of $481 million) •4.85% Notes due 2048 with principal of $600 million (partial repurchase of $381 million) Exchange Offers Also in March 2022, we completed two concurrent debt exchange offers through which $2,544 million of aggregate principal of existing notes was tendered and accepted in exchange for a combination of new notes and cash. The debt exchange offers were treated as debt modifications for accounting purposes resulting in a portion of the unamortized debt discount, premiums and debt issuance costs of the existing notes being allocated to the new notes on the settlement dates of the exchange offers. We paid premiums above face value of $883 million, comprised of $872 million of cash as well as new notes, which were capitalized as additional debt discount. We incurred expenses of $28 million in the exchanges which are included in the "Other expenses" line on our consolidated income statement. The notes tendered and accepted in the exchange offers were: •7% Debentures due 2029 with principal amount of $200 million (partial exchange of $88 million) •6.95% Notes due 2029 with principal amount of $1,549 million (partial exchange of $354 million) •7.4% Notes due 2031 with principal amount of $500 million (partial exchange of $118 million) •7.25% Notes due 2031 with principal amount of $500 million (partial exchange of $100 million) •7.2% Notes due 2031 with principal amount of $575 million (partial exchange of $128 million) •5.95% Notes due 2036 with principal amount of $500 million (partial exchange of $174 million) •5.9% Notes due 2038 with principal amount of $600 million (partial exchange of $250 million) •6.5% Notes due 2039 with principal amount of $2,750 million (partial exchange of $1,162 million) •5.95% Notes due 2046 with principal amount of $500 million (partial exchange of $171 million) The notes tendered and accepted were exchanged for the following new notes: •3.758% Notes due 2042 with principal amount of $785 million •4.025% Notes due 2062 with principal amount of $1,770 million New Debt Issuance On March 8, 2022, we issued the following new notes consisting of: •2.125% Notes due 2024 with principal of $900 million •2.4% Notes due 2025 with principal of $900 million •3.8% Notes due 2052 with principal of $1,100 million In February 2022, we refinanced our revolving credit facility from a total borrowing capacity of $6.0 billion to $5.5 billion with an expiration date of February 2027. Our revolving credit facility may be used for direct bank borrowings, the issuance of letters of credit totaling up to $500 million, or as support for our commercial paper program. The revolving credit facility is broadly syndicated among financial institutions and does not contain any material adverse change provisions or any covenants requiring maintenance of specified financial ratios or credit ratings. The facility agreement contains a cross-default provision relating to the failure to pay principal or interest on other debt obligations of $200 million or more by ConocoPhillips, or any of its consolidated subsidiaries. The amount of the facility is not subject to redetermination prior to its expiration date. Credit facility borrowings may bear interest at a margin above rates offered by certain designated banks in the London interbank market or at a margin above the overnight federal funds rate or prime rates offered by certain designated banks in the U.S. The facility agreement calls for commitment fees on available, but unused, amounts. The facility agreement also contains early termination rights if our current directors or their approved successors cease to be a majority of the Board of Directors. The revolving credit facility supports our ability to issue up to $5.5 billion of commercial paper. Commercial paper is generally limited to maturities of 90 days and is included in short-term debt on our consolidated balance sheet. With no commercial paper outstanding and no direct borrowings or letters of credit, we had access to $5.5 billion in available borrowing capacity under our revolving credit facility at September 30, 2022. At December 31, 2021, we had no commercial paper outstanding and no direct borrowings or letters of credit issued. In September 2022, Moody's upgraded our long-term credit rating to "A2" with a stable outlook from the previous "A3" with a positive outlook and upgraded our commercial paper rating to "Prime-1" from "Prime-2". The current credit ratings on our long-term debt are: •Fitch: “A” with a “stable” outlook •S&P: “A-” with a “stable” outlook •Moody's: "A2" with a "stable" outlook We do not have any ratings triggers on any of our corporate debt that would cause an automatic default, and thereby impact our access to liquidity upon downgrade of our credit ratings. If our credit ratings are downgraded from their current levels, it could increase the cost of corporate debt available to us and restrict our access to the commercial paper markets. If our credit ratings were to deteriorate to a level prohibiting us from accessing the commercial paper market, we would still be able to access funds under our revolving credit facility. At September 30, 2022, we had $283 million of certain variable rate demand bonds (VRDBs) outstanding with maturities ranging through 2035. The VRDBs are redeemable at the option of the bondholders on any business day. If they are ever redeemed, we have the ability and intent to refinance on a long-term basis, therefore, the VRDBs are included in the “Long-term debt” line on our consolidated balance sheet.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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