Devon Energy Announces Early Redemption of $700 Million of Senior Notes

Rhea-AI Summary

Devon Energy Corporation announced that its subsidiary, WPX Energy, will redeem a total of $700 million in senior notes due from 2027 to 2030. The redemption includes $210 million of 5.250% notes, $175 million of 5.875% notes, and $315 million of 4.500% notes. This action is part of a broader $1.5 billion debt repurchase program aimed at enhancing shareholder value. The redemption prices will be 105.250%, 105.875%, and 104.500% of the principal amounts, respectively. The scheduled redemption dates are set for March 26 and April 10, 2021.

Positive

• Initiating redemption of $700 million in senior notes supports shareholder value and financial stability.
• Execution of nearly half of the $1.5 billion debt repurchase program improves the company's leverage position.

Negative

• None.

OKLAHOMA CITY, March 11, 2021 (GLOBE NEWSWIRE) -- WPX Energy, Inc. (“WPX”), a wholly-owned subsidiary of Devon Energy Corporation (the “Company”), notified The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) under that certain Indenture, dated as of September 8, 2014, between WPX and the Trustee (as supplemented, the “Indenture”), of its intention to redeem the aggregate principal amounts set forth below with respect to the following notes issued under the Indenture:

• $210,000,000 of the 5.250% Senior Notes due 2027 (the “2027 Notes”);
  
  
• $175,000,000 of the 5.875% Senior Notes due 2028 (the “2028 Notes”); and
  
  
• $315,000,000 of the 4.500% Senior Notes due 2030 (the “2030 Notes” and, together with the 2027 Notes and the 2028 Notes, the “Notes”).
  

Such Notes will be redeemed in accordance with the terms set forth in the Indenture regarding the redemption of Notes following a cash equity contribution to, or other equity offering by, WPX. The redemption price will equal (1) 105.250%, 105.875% and 104.500% of the principal amount of the 2027 Notes, the 2028 Notes and 2030 Notes being redeemed, respectively, plus (2) accrued and unpaid interest, if any, up to, but not including, the applicable redemption date. The funds for the redemption will be contributed to WPX by the Company on or prior to the applicable redemption date, which is March 26, 2021 for the 2028 Notes and the 2030 Notes being redeemed and April 10, 2021 for the 2027 Notes being redeemed.

“This debt redemption is another important step in our plan to return value to shareholders,” said Jeff Ritenour, executive vice president and chief financial officer. “With this redemption we will have executed on nearly half of our $1.5 billion board authorized debt repurchase program and we will continue to manage toward our stated leverage target of 1 times net debt-to-EBITDA or less.”

ABOUT DEVON ENERGY

Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.

Investor Contacts Scott Coody, 405-552-4735 Chris Carr, 405-228-2496

Media Contact Lisa Adams, 405-228-1732

FORWARD LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Devon. These risks include, but are not limited to: the risk that we do not complete the debt repurchase program or meet or maintain our leverage target; and the other risks identified in Devon’s 2020 Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission.  Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially and adversely from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date hereof, and Devon does not undertake, and expressly disclaim, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.

FAQ

What is Devon Energy's recent debt redemption announcement regarding DVN?

Devon Energy's subsidiary WPX Energy plans to redeem $700 million in senior notes to enhance shareholder value as part of a $1.5 billion debt repurchase program.

When are the redemption dates for the notes issued by WPX Energy?

The redemption dates are scheduled for March 26, 2021, for the 2028 and 2030 notes, and April 10, 2021, for the 2027 notes.

What is the total amount of senior notes being redeemed by Devon Energy?

Devon Energy announced the redemption of a total of $700 million in senior notes.

How much of the debt repurchase program has Devon Energy executed?

Devon Energy has executed nearly half of its $1.5 billion board-authorized debt repurchase program.