8-KMaterial AgreementsFinancial EventsExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Material Agreement (Aug 28, 2024)

Filed August 28, 2024For Securities:DVN

Summary

Devon Energy Corporation (DVN) has reported the closure of a significant public offering of senior notes, raising a total of $2.25 billion. This offering includes $1.25 billion in 5.200% Senior Notes due 2034 and $1.00 billion in 5.750% Senior Notes due 2054. These notes are general obligations of the company and rank equally with existing and future unsecured and unsubordinated debt. The issuance is part of the company's ongoing financing strategy and is incorporated into its existing shelf registration statement. The primary driver for a potential special mandatory redemption of these notes is related to the consummation of Devon's pending acquisition of the Williston Basin business from Grayson Mill Energy. Should this acquisition not close by a specified date or if the purchase agreement is terminated, Devon would be obligated to redeem the notes at a premium of 101% of their principal amount. Investors should monitor the progress of the Grayson Mill Acquisition and its implications for the company's capital structure.

Key Highlights

  • 1Devon Energy successfully closed a public offering of $2.25 billion in senior notes.
  • 2The offering comprises $1.25 billion of 5.200% Senior Notes due 2034 and $1.00 billion of 5.750% Senior Notes due 2054.
  • 3The Notes are general, unsecured, and unsubordinated obligations of Devon Energy.
  • 4Interest on the notes will be paid semi-annually on March 15 and September 15.
  • 5The company has the option to redeem the notes prior to maturity at a make-whole price or at par after specified dates.
  • 6A special mandatory redemption at 101% of principal is required if the acquisition of Grayson Mill Energy's Williston Basin business does not close by a specified date or if the agreement is terminated.

Frequently Asked Questions

Devon Energy raised a total of $2.25 billion from the public offering of senior notes, consisting of $1.25 billion in 5.200% Senior Notes due 2034 and $1.00 billion in 5.750% Senior Notes due 2054.

While the specific use of proceeds is not detailed in this 8-K, such offerings are typically used to fund general corporate purposes, capital expenditures, potential acquisitions, or to refinance existing debt. Investors should refer to other filings or company communications for detailed use of proceeds.

A special mandatory redemption at 101% of the principal amount would be triggered if Devon's pending acquisition of the Williston Basin business from Grayson Mill Energy does not close by a specified date (later of five business days after April 8, 2025, or any agreed extension) or if the purchase agreement for that acquisition is terminated prior to that date.

Interest on both the 2034 Notes and the 2054 Notes will be payable semi-annually on March 15 and September 15 of each year, with the first payment beginning on March 15, 2025.