v3.22.0.1
Debt
 12 Months Ended
Dec. 31, 2021
Debt [Abstract]  
Debt
Note 9—Debt
Long-term debt at December 31 was:
Millions of Dollars
2021
2020
9.125
% Debentures due 2021
$
-
123
2.4
% Notes due 2022
329
329
7.65
% Debentures due 2023
78
78
3.35
% Notes due 2024
426
426
8.2
% Debentures due 2025
134
134
3.35
% Notes due 2025
199
199
6.875
% Debentures due 2026
67
67
4.95
% Notes due 2026
1,250
1,250
7.8
% Debentures due 2027
203
203
3.75
% Notes due 2027
981
-
3.75
% Notes due 2027
19
-
4.3
% Notes due 2028
973
-
4.3
% Notes due 2028
27
-
7.375
% Debentures due 2029
92
92
7
% Debentures due 2029
200
200
6.95
% Notes due 2029
1,549
1,549
8.125
% Notes due 2030
390
390
2.4
% Notes due 2031
489
-
2.4
% Notes due 2031
11
-
7.2
% Notes due 2031
575
575
7.25
% Notes due 2031
500
500
7.4
% Notes due 2031
500
500
5.9
% Notes due 2032
505
505
4.15
% Notes due 2034
246
246
5.95
% Notes due 2036
500
500
5.951
% Notes due 2037
645
645
5.9
% Notes due 2038
600
600
6.5
% Notes due 2039
2,750
2,750
4.3
% Notes due 2044
750
750
5.95
% Notes due 2046
500
500
7.9
% Debentures due 2047
60
60
4.875
% Notes due 2047
800
-
4.85
% Notes due 2048
590
-
4.85
% Notes due 2048
10
-
Floating rate notes due 2022 at
1.02
% –
1.12
% during 2021 and
 
1.12
% –
2.81
% during 2020
500
500
Marine Terminal
 
Revenue Refunding Bonds due 2031 at
0.04
% –
0.15
% during
 
2021 and
0.1
% –
7.5
% during 2020
265
265
Industrial Development Bonds due 2035 at
0.04
% –
0.12
% during 2021 and
 
0.11
% –
7.5
% during 2020
18
18
Commercial Paper at
0.05
% –
0.22
% during 2021
-
300
Other
35
38
Debt at face value
17,766
14,292
Finance leases
1,261
891
Net unamortized premiums, discounts and debt
 
issuance costs
907
186
Total
 
debt
19,934
15,369
Short-term debt
(1,200)
(619)
Long-term debt
$
18,734
14,750
On January 15, 2021, we completed the acquisition of Concho
 
in an all-stock transaction.
 
In the acquisition, we
assumed Concho’s publicly
 
traded debt, with an outstanding principal balance
 
of $
3.9
 
billion, which was recorded
at fair value of $
4.7
 
billion on the acquisition date.
 
The adjustment to fair value of the senior notes
 
of
approximately $
0.8
 
billion on the acquisition date will be amortized as
 
an adjustment to interest
 
expense over the
remaining contractual terms
 
of the senior notes.
In the first quarter of 2021, we completed
 
a debt exchange offer
 
related to the debt assumed from
 
Concho.
 
Of the
approximately $
3.9
 
billion in aggregate principal amount
 
of Concho’s senior notes
 
offered in the exchange,
98
percent, or approximately
 
$
3.8
 
billion, was tendered and accepted.
 
The new debt issued by ConocoPhillips had
the same interest rates
 
and maturity dates as the Concho senior notes.
 
The portion not exchanged, approximately
$
67
 
million, remained outstanding across
 
five series of senior notes issued by Concho.
 
The debt exchange was
treated as a debt modification for
 
accounting purposes resulting in a portion
 
of the unamortized fair value
adjustment of the Concho senior notes allocated
 
to the new debt issued by ConocoPhillips on the settlement
 
date
of the exchange.
 
The new debt issued in the exchange is
 
fully and unconditionally guaranteed by
 
ConocoPhillips
Company.
 
We have a revolving
 
credit facility totaling $
6.0
 
billion with an expiration date
 
of May 2023.
 
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 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 $
6.0
 
billion of commercial paper,
 
which is primarily a
funding source for short-term
 
working capital needs.
 
Commercial paper maturities are generally
 
limited to
90
days
.
 
With no commercial paper outstanding
 
and
no
 
direct borrowings or letters
 
of credit, we had access to
$
6.0
 
billion in available borrowing capacity
 
under our revolving credit facility
 
at December 31, 2021.
 
We had
no
direct borrowings, letters
 
of credit, and $
300
 
million of commercial paper outstanding
 
as of December 31, 2020.
For information on Finance Leases,
 
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: “A3” with a “positive” 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 rating 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 both December 31, 2021 and 2020, 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.