8-KMaterial AgreementsExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Material Agreement (Aug 21, 2024)

Filed August 21, 2024For Securities:DVN

Summary

Devon Energy Corporation (DVN) announced on August 21, 2024, the execution of an Underwriting Agreement on August 19, 2024, for a registered public offering of senior notes. This offering includes $1.25 billion in 5.200% Senior Notes due 2034 and $1.0 billion in 5.750% Senior Notes due 2054. The offering is being conducted under the company's existing shelf registration statement and is expected to close on August 28, 2024, subject to customary closing conditions. This debt issuance signals Devon Energy's strategy to potentially fund ongoing operations, capital expenditures, or refinance existing debt. Investors should note the coupon rates and maturity dates of the new notes as they represent a significant increase in the company's long-term debt obligations. The presence of major financial institutions as underwriters, including Citigroup Global Markets Inc., BofA Securities, Inc., Truist Securities, Inc., and Wells Fargo Securities, LLC, indicates a well-supported offering.

Key Highlights

  • 1Devon Energy entered into an Underwriting Agreement on August 19, 2024, for a public offering of senior notes.
  • 2The offering consists of $1.25 billion in 5.200% Senior Notes due 2034.
  • 3The offering also includes $1.0 billion in 5.750% Senior Notes due 2054.
  • 4The notes are being sold in a registered public offering under an existing shelf registration statement.
  • 5The offering is expected to close on August 28, 2024.
  • 6The Underwriting Agreement includes standard representations, warranties, covenants, and indemnification provisions.
  • 7Affiliates of the underwriters have existing relationships with Devon Energy, including lending under credit facilities.

Frequently Asked Questions

Devon Energy is issuing a total of $2.25 billion in aggregate principal amount of senior notes, comprising $1.25 billion of 5.200% Senior Notes due 2034 and $1.0 billion of 5.750% Senior Notes due 2054.

The filing does not explicitly state the purpose of the debt issuance. However, such offerings are typically used to fund capital expenditures, general corporate purposes, acquisitions, or to refinance existing debt.

The offering is expected to close on August 28, 2024, subject to the satisfaction of customary closing conditions.

Yes, certain affiliates of the underwriters have historically performed and may continue to perform financial advisory and investment banking services for Devon Energy. Additionally, these affiliates are parties to and lenders under the Company’s revolving and term loan credit facilities.