v3.26.1
DEBT
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt

NOTE E: DEBT

 

 

 

June 30,

 

 

December 31,

 

(in millions)

 

2026

 

 

2025

 

 

 

 

 

3.450% Senior Notes, due 2027

 

 

300

 

 

 

299

 

3.500% Senior Notes, due 2027

 

 

494

 

 

 

493

 

2.500% Senior Notes, due 2030

 

 

474

 

 

 

473

 

2.400% Senior Notes, due 2031

 

 

891

 

 

 

891

 

5.150% Senior Notes, due 2034

 

 

739

 

 

 

739

 

6.25% Senior Notes, due 2037

 

 

229

 

 

 

229

 

4.250% Senior Notes, due 2047

 

 

591

 

 

 

591

 

3.200% Senior Notes, due 2051

 

 

851

 

 

 

851

 

5.500% Senior Notes, due 2054

 

 

727

 

 

 

727

 

Revolving Facility1

 

 

95

 

 

 

—

 

Trade Receivable Facility2

 

 

560

 

 

 

30

 

Total debt

 

 

5,951

 

 

 

5,323

 

Less: current maturities

 

 

(860

)

 

 

(30

)

Long-term debt

 

$

5,091

 

 

$

5,293

 

 

1 Borrowings bear interest, at the Company’s option, at rates based upon the Secured Overnight Financing Rate (SOFR) or a base rate, plus, for each rate, a margin determined in accordance with a ratings-based pricing grid. Revolving Facility interest rate is 4.75% at June 30, 2026. Any outstanding principal amounts, together with interest accrued thereon, are due in full on the maturity date.

2 Borrowings bear interest at a rate equal to the Adjusted Term Secured Overnight Financing Rate (Adjusted Term SOFR), as defined, plus 0.7%. Trade Receivable Facility interest rate is 4.32% and 4.57% at June 30, 2026 and December 31, 2025, respectively.

 

On May 14, 2026, the Company requested, and lenders consented to, an increase in the borrowing base of the Trade Receivable Facility from $400 million to $600 million. The Company funded the NFM acquisition (see Note B) using cash on hand and short-term borrowings under the Trade Receivable Facility.

The Company's credit facilities contain the following provisions:

 

 

 

Revolving

 

Trade Receivable

 

 

Facility

 

Facility*

Facility limit

 

$800 million

 

$600 million

Lenders

 

Syndicate of banks

 

Syndicate of banks

Maturity date

 

December 21, 2030

 

September 16, 2026

* Borrowings limited to lesser of facility limit or borrowing base, as defined

Available borrowings under the Revolving Facility are reduced by any outstanding letters of credit issued by the Company under the Revolving Facility. At June 30, 2026 and December 31, 2025, the Company had $3 million of outstanding letters of credit issued under the Revolving Facility.

As of June 30, 2026, the Revolving Facility requires the Company’s ratio of consolidated net debt-to-consolidated earnings before interest, taxes, depreciation, depletion and amortization (EBITDA), as defined, for the trailing-twelve month period (the Ratio) not to exceed 3.50x as of the end of any fiscal quarter, provided that the Company may exclude from the Ratio any debt incurred in connection with certain acquisitions during the quarter or the three preceding quarters so long as the Ratio calculated without such exclusion does not exceed 4.25x.

On July 10, 2026, the Company amended its Revolving Facility financial covenant provisions to allow for a maximum ratio of (a) 4.75x for the first three quarters after closing the pending LNA transaction; (b) 4.25x for the next succeeding three quarters; and (c) 3.75x thereafter, provided that the Company may exclude from the Ratio debt incurred in connection with certain acquisitions for a period of four quarters so long as the Ratio calculated without such exclusion does not exceed 4.25x. Additionally, if no amounts are outstanding under the Revolving Facility or the Company's Trade Receivable Facility, consolidated debt, as defined, which includes debt for which the Company is a guarantor, is reduced by the lesser of $500 million or the sum of the Company’s unrestricted cash and temporary investments, for purposes of the covenant calculation. The Trade Receivable Facility contains a cross-default provision to the Company’s other debt agreements. The Company was in compliance with the Ratio at June 30, 2026.