8-K/AAcquisitions & DispositionsExhibits & Filings

DEVON ENERGY CORP/DE 8-K/A Report, Acquisition Completed (Jun 18, 2008)

Filed June 18, 2008For Securities:DVN

Summary

Devon Energy Corporation (DVN) filed an amendment to its Form 8-K to provide unaudited pro forma condensed financial information following the completion of its asset sale in Equatorial Guinea. On June 3, 2008, Devon announced the sale of these oil and gas assets to GEPetrol, the national oil company, for $2.2 billion before taxes. After tax and purchase price adjustments, Devon received approximately $1.6 billion in net proceeds at closing. The pro forma financial statements reflect the impact of this sale, presenting continuing operations separately from the disposed assets. The company intends to use the proceeds to repay outstanding commercial paper and revolving credit facility borrowings, and potentially resume stock repurchases. Investors can use this information to better understand the company's financial position and operational changes resulting from this significant divestiture.

Key Highlights

  • 1Devon Energy completed the sale of its oil and gas assets in Equatorial Guinea to GEPetrol for $2.2 billion (pre-tax).
  • 2Net after-tax proceeds received at closing were approximately $1.6 billion after adjustments.
  • 3The filing includes unaudited pro forma condensed financial statements to reflect the impact of the sale.
  • 4Pro forma balance sheet adjustments show reduced assets and liabilities, with proceeds used to repay debt.
  • 5Pro forma statements of operations focus on continuing operations, excluding revenues and expenses from Equatorial Guinea.
  • 6Proceeds are earmarked for repaying commercial paper and credit facility borrowings.
  • 7This divestiture is part of Devon's strategy to optimize its asset portfolio and financial structure.

Frequently Asked Questions

This Form 8-K/A filing serves as an amendment to a previous 8-K. Its primary purpose is to provide investors with unaudited pro forma condensed financial information that reflects the impact of Devon Energy's sale of its oil and gas assets in Equatorial Guinea.

The sale was for $2.2 billion before taxes. After tax and purchase price adjustments, Devon received approximately $1.6 billion in net proceeds at closing. The pro forma financial statements indicate a gain on the sale of approximately $806 million, based on the sale closing on March 31, 2008, and the net assets sold.

Devon Energy intends to use the proceeds primarily to repay outstanding commercial paper and revolving credit facility borrowings. The company also indicated a potential to resume common stock repurchases.

The pro forma statements of operations exclude all revenues and expenses related to the Equatorial Guinea operations, presenting only Devon's continuing operations. The balance sheet reflects the asset sale and the subsequent repayment of debt.