8-KOther Events

DEVON ENERGY CORP/DE 8-K Report (May 12, 2004)

Filed May 12, 2004For Securities:DVN

Summary

Devon Energy Corporation (DVN) has filed an 8-K to disclose the provision of a revocable parental guaranty for specific debt securities issued by its subsidiary, Devon Canada Corporation. These debt securities were originally assumed by Devon as part of its 2001 acquisition of Anderson Exploration, Ltd. and were not previously guaranteed by the parent company. This action aims to strengthen the credit standing of these outstanding notes by providing the backing of the parent corporation.

Key Highlights

  • 1Devon Energy Corp. has issued a parental guaranty for certain debt securities of its subsidiary, Devon Canada Corporation.
  • 2The guaranteed debt includes C$175 million of 7.25% medium-term notes due July 18, 2005.
  • 3The guaranteed debt also includes C$200 million of 6.55% medium-term notes due August 2, 2006.
  • 4Additionally, US$400 million of 6.75% notes due March 15, 2011 are covered by the guaranty.
  • 5These debt securities were originally assumed by Devon through its 2001 acquisition of Anderson Exploration, Ltd.
  • 6The parental guaranty is revocable by Devon Energy Corp. with 30 days' notice to the Trustee.
  • 7This action likely serves to enhance the creditworthiness of the specified subsidiary debt.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors that Devon Energy Corporation has provided a revocable parental guaranty for specific debt securities issued by its subsidiary, Devon Canada Corporation.

The guaranty covers C$175 million of 7.25% medium-term notes due July 18, 2005; C$200 million of 6.55% medium-term notes due August 2, 2006; and US$400 million of 6.75% notes due March 15, 2011.

Yes, Devon Energy Corporation has the ability to revoke the guaranty at any time, provided they give 30 days' notice to the Trustee.

The parental guaranty signifies an enhancement of the credit quality for these specific debt instruments. It means that the debt obligations are now backed by the full faith and credit of the parent company, Devon Energy Corporation, which may reduce perceived risk for holders of these notes.