DVN · 10-Q · 2026Q2 · Full report
Outstanding Indebtedness
DEVON ENERGY CORP/DE · 2026-08-05 · Importance 64 · Surprise 42 · In source text
Devon assumed approximately $3.5 billion of Coterra debt when the merger closed on May 7, 2026. During the second quarter, Devon repaid $250 million of its Term Loan and redeemed $250 million of 3.77% senior notes due September 2026. Devon repaid the remaining $750 million Term Loan in July 2026, leaving no debt maturities until the second quarter of 2027. At June 30, 2026, the company had approximately $3.0 billion of available Senior Credit Facility capacity, no commercial-paper borrowings and investment-grade ratings of BBB+, BBB+ and Baa2 from S&P, Fitch and Moody’s, respectively.
Key facts
- In July 2026, Devon repaid the remaining $750 million of outstanding principal, retiring the Term Loan in full, and following these repayments had no outstanding debt maturities until the second quarter of 2027. source
- As of June 30, 2026, Devon had approximately $3.0 billion of available borrowing capacity under its Senior Credit Facility which supports $3.0 billion of short-term credit under the commercial paper program, and there were no borrowings under the commercial paper program at that date. source
- Devon assumed a principal value of approximately $3.5 billion of Coterra debt in conjunction with the Merger closing on May 7, 2026. source
- Debt activity in the period included debt repayments of $500 million in the three months and $500 million in the six months ended June 30, 2026 (repayments of debt). source
- In the second quarter of 2026, Devon repaid $250 million of the outstanding principal on the Term Loan, reducing the outstanding balance to $750 million, and early redeemed $250 million of 3.77% senior notes due in September 2026. source
- Contractual obligations increased as a result of the Merger and include debt and related interest expense, asset retirement obligations, lease obligations, operational agreements, drilling and facility obligations, various tax obligations and other obligations. source
- Devon retired $500 million of debt in Q2 2026. source
- Devon maintains a commercial paper program supported by its revolving line of credit which can be accessed as needed; at June 30, 2026 there were no borrowings under the commercial paper program. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | -4.9% | Devon assumed a principal value of approximately $3.5 billion of Coterra debt in conjunction with the Merger closing on May 7, 2026. |
| liability | positive | realized | +1.1% | In July 2026, Devon repaid the remaining $750 million of outstanding principal, retiring the Term Loan in full, and following these… |
| cash | negative | realized | -1.1% | In July 2026, Devon repaid the remaining $750 million of outstanding principal, retiring the Term Loan in full, and following these… |
| liability | negative | realized | -0.7% | Debt activity in the period included debt repayments of $500 million in the three months and $500 million in the six months ended June 30,… |
| cash | negative | realized | -0.7% | Debt activity in the period included debt repayments of $500 million in the three months and $500 million in the six months ended June 30,… |