OKLAHOMA CITY, Aug. 3 /PRNewswire-FirstCall/ -- Devon Energy Corporation
(NYSE: DVN) announced today, in conjunction with announcing record second
quarter 2005 earnings per share, that it has completed the stock repurchase
program announced on September 27, 2004. At that time the company said it
planned to repurchase up to 10 percent of its common stock, or approximately
50 million shares, over an 18-month period. Under this program, Devon
repurchased the shares at an aggregate cost of $2.3 billion. The company
completed the repurchase program in approximately 10 months.
Second 50 Million Share Repurchase Program Announced
The company also announced today that its board of directors has
authorized the repurchase of up to an additional 50 million shares of its
common stock. This second stock repurchase program is planned to extend
through 2007. Shares may be purchased from time to time depending upon market
conditions. The company plans to repurchase shares in the open market and in
privately negotiated transactions.
Devon to Redeem 6.75 Percent Notes due 2011
Furthermore, the company announced today that it intends to redeem all of
its (U.S.) $400 million principal amount 6.75 percent notes due 2011 using
cash on hand. These notes were assumed by Devon when it acquired Anderson
Exploration Ltd. in 2001. Under the terms of these securities, Devon may
redeem the notes at any time at the redemption price described in the
prospectus.
"In September 2004, we outlined several initiatives intended to enhance
Devon's value and investment appeal," said Brian J. Jennings, senior vice
president and chief financial officer. "We split our stock and moved to the
New York Stock Exchange, divested over $2 billion of non-core oil and gas
properties and repurchased more than 10 percent of our common stock. We also
pledged to retire $930 million of debt maturing in 2005. Today's announcements
to initiate a second 50 million share repurchase program and to redeem $400
million of additional debt, further demonstrate our firm commitment to enhance
shareholder value."
The redemption price of the 6.75 percent notes (CUSIP: 033901AA7) will
equal the comparable Treasury Yield, as defined in the prospectus, plus 25
basis points. The ultimate redemption price will be dependent upon the
comparable Treasury Yield on the third business day preceding the redemption
date of September 8, 2005. Interest will cease to accrue on the redemption
date.
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration, production and property
acquisitions. Devon is the largest U.S.-based independent oil and gas producer
and is included in the S&P 500 Index. For additional information, visit
http://www.devonenergy.com .
SOURCE Devon Energy Corporation
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Related links:
http://www.devonenergy.com
Company News On-Call:
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
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