Devon Energy Retires $635 Million of Debt

Devon Energy has utilized cash on hand to retire the remaining $635 million balance of a $3 billion acquisition facility established in 2001. The acquisition facility bore interest at LIBOR plus one percent and had a maturity date of October 2006. Devon incurred no penalties for early repayment of this debt. Including the $635 million repayment, Devon has retired $846 million of debt in 2004. The company currently retains approximately $800 million of cash intended for future debt repayment.

In conjunction with the early retirement, the company also announced that it has entered into a new $1.5 billion revolving credit facility, maturing in April 2009. The new revolving credit facility replaces its existing $1.0 billion revolving credit facility maturing in 2004. Devon has no balance outstanding under the new revolving credit facility.

"By retiring the acquisition facility and putting the new five-year revolving credit facility in place, we have accelerated debt repayment and lowered our interest expense without compromising the company's liquidity," said Brian Jennings, Devon's senior vice president and chief financial officer. "These actions underscore our commitment to continue to reduce leverage and maintain our financial flexibility."