Devon Energy Announces Early Redemption of $700 Million of Senior Notes
March 11 2021 - 4:05PM
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 ContactsScott Coody, 405-552-4735Chris
Carr, 405-228-2496 |
Media ContactLisa 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.
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