Devon Energy retires $635M in debt

Ray Tyson

Petroleum News Houston correspondent

Devon Energy, the largest independent producer in the United States, said April 12 it used cash on hand to retire the remaining $635 million balance of a $3 billion acquisition credit facility established in 2001.

The acquisition account had a maturity date of October 2006 and incurred no penalties for early repayment of this debt, the company said. Including the $635 million repayment, Devon has retired $846 million of debt in 2004. The company said it retained about $800 million of cash associated with the early retirement and that it entered into a new $1.5 billion revolving credit facility, maturing in April 2009. The new facility replaces the company’s existing $1 billion revolving credit facility maturing in 2004. Devon said it 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 chief financial officer.