OKLAHOMA CITY, July 2 /PRNewswire-FirstCall/ -- Devon Energy
Corporation (NYSE: DVN) announced today that it intends to establish a new
$1 billion short-term credit facility. The facility will provide the
company with provisional interim liquidity until it receives the proceeds
from divestitures of assets in Africa. The company previously announced its
intention to divest its African operations.
Devon also announced that its board of directors has approved an
ongoing, annual stock repurchase program. The purpose of the annual stock
repurchase program is to offset dilution resulting from restricted stock
issued to and options exercised by employees. The new repurchase program is
in addition to the company's 50 million share repurchase program that was
authorized in August 2005.
Short-term Credit Facility
The $1 billion, 364-day unsecured revolving senior credit facility will
be arranged through a syndicate of banks led by Banc of America Securities
LLC and J. P. Morgan Securities Inc. Devon expects to complete the
transaction during the third quarter of 2007.
Devon has no current intentions to draw additional funds under its
existing $2.5 billion credit facility or under the new credit facility.
However, the new credit facility would enable Devon to increase borrowings
under its existing commercial paper program from a current maximum of $2
billion to a new maximum of $3 billion, if the need arises. Borrowings
under the commercial paper program reduce available capacity under the
credit facilities on a dollar for dollar basis.
The company had approximately $1.6 billion borrowed under the
commercial paper program at June 30, 2007. Whether commercial paper
borrowings will exceed the current $2 billion maximum is dependent upon
potential borrowing requirements and the timing of Devon's African
divestiture program. Commercial paper borrowings exceeding the current $2
billion maximum could result from debt retirements and share repurchases.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is one of
the world's leading independent oil and gas producers and is included in
the S&P 500 Index. For additional information, visit
http://www.devonenergy.com.
This press release includes "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements are those
concerning forecasts, estimates, expectations and objectives for future
operations. Such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of the company.
Statements regarding future capital requirements and divestitures are
subject to many risks and uncertainties. These risks include, but are not
limited to, inflation or lack of availability of goods and services,
environmental risks, drilling risks and regulatory changes. Investors are
cautioned that any such statements are not guarantees of future performance
and that actual results or developments may differ materially from those
projected in the forward-looking statements.
SOURCE Devon Energy Corporation
 back to top
Related links:
http://www.devonenergy.com
http://www.prnewswire.com/comp/118040.html /
CONTACT:
Investors, Zack Hager, +1-405-552-4526, or
Media, Brian Engel, +1-405-228-7750, both of Devon Energy
Corporation
|
