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Debt And Related Expenses
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Debt and Related Expenses
13.

See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon.

 

 

 

March 31, 2023

 

 

December 31, 2022

 

8.25% due August 1, 2023

 

$

242

 

 

$

242

 

5.25% due September 15, 2024

 

 

472

 

 

 

472

 

5.85% due December 15, 2025

 

 

485

 

 

 

485

 

7.50% due September 15, 2027

 

 

73

 

 

 

73

 

5.25% due October 15, 2027

 

 

390

 

 

 

390

 

5.875% due June 15, 2028

 

 

325

 

 

 

325

 

4.50% due January 15, 2030

 

 

585

 

 

 

585

 

7.875% due September 30, 2031

 

 

675

 

 

 

675

 

7.95% due April 15, 2032

 

 

366

 

 

 

366

 

5.60% due July 15, 2041

 

 

1,250

 

 

 

1,250

 

4.75% due May 15, 2042

 

 

750

 

 

 

750

 

5.00% due June 15, 2045

 

 

750

 

 

 

750

 

Net premium on debentures and notes

 

 

92

 

 

 

103

 

Debt issuance costs

 

 

(33

)

 

 

(26

)

Total debt

 

$

6,422

 

 

$

6,440

 

Less amount classified as short-term debt

 

 

247

 

 

 

251

 

Total long-term debt

 

$

6,175

 

 

$

6,189

 

 

Credit Lines

On March 24, 2023, Devon amended and restated its 2018 Senior Credit Facility to provide for a new $3.0 billion revolving 2023 Senior Credit Facility with a financial covenant and other terms similar to the 2018 Senior Credit Facility. The 2023 Senior Credit Facility matures on March 24, 2028, with the option to extend the maturity date by three additional one-year periods, subject to lender consent. As of March 31, 2023, Devon had no outstanding borrowings under the 2023 Senior Credit Facility and had issued $2 million in outstanding letters of credit under this facility. The 2023 Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. Under the terms of the credit agreement, total capitalization is adjusted to add back non-cash financial write-downs such as impairments. As of March 31, 2023, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 23.2%.

Net Financing Costs

The following schedule includes the components of net financing costs.

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Interest based on debt outstanding

 

$

93

 

 

$

92

 

Interest income

 

 

(17

)

 

 

(1

)

Other

 

 

(4

)

 

 

(6

)

Total net financing costs

 

$

72

 

 

$

85

 

Interest income increased from 2022 to 2023 primarily due to higher interest rates on cash balances.