We remain focused on maintaining our financial strength and flexibility.

We believe our balance sheet is a meaningful asset to our shareholders. We have solid investment-grade ratings and ample liquidity to internally fund all of our debt obligations.
three year debt maturity schedule
Year-End 2008
Total Debt $32.5 billion
Weighted Average Life 13.7 years
Fixed % - Floating % 82-18%
Debt/OCF 2.5x
Interest Expense $2.4 billion
Interest Coverage(b) 5.4x
Credit Facility Available(c) $5.5 billion
Cash Balance $1.2 billion
Credit Ratings:
S&P BBB+
Moody's(d) Baa2
Fitch BBB+

(a) Includes $250 million of 8.5% notes due 2027 with a one-time put right in May 2009.
(b) Interest Coverage is equal to Operating Cash Flow divided by Interest Expense.
(c) Credit Facility totals $6.8 billion and is due in January 2013. Availability is reduced by issued letters of credit ($0.3 billion), commercial paper (none outstanding), and revolver borrowings ($1 billion).
(d) On February 9, 2009, Moody's Investors Service announced it placed our ratings on review for a possible upgrade.

See Notes and Definitions below.

CEO Message

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