Analysis of Debt
Total Debt (Carrying Amount)
Devon Energy Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The total debt and finance lease liabilities exhibit a volatile trend between 2018 and 2022, characterized by an initial period of deleveraging followed by a substantial increase in borrowing and a subsequent stabilization.
- Aggregate Debt Trends
- Total liabilities decreased significantly from 5,947 million US$ in 2018 to 4,541 million US$ in 2019. This level remained nearly constant through 2020 before experiencing a sharp increase to 6,737 million US$ in 2021. The period concluded with a slight reduction to 6,697 million US$ by December 31, 2022.
- Long-Term Debt Analysis
- Long-term debt serves as the primary driver of the overall debt profile. A notable reduction occurred between 2018 and 2019, falling from 5,785 million US$ to 4,294 million US$. A significant reversal occurred in 2021, where long-term debt surged to 6,482 million US$, marking the highest level of long-term obligations within the five-year period before declining to 6,189 million US$ in 2022.
- Finance Lease Obligations
- Finance lease liabilities remained remarkably stable throughout the analyzed period. Combined current and long-term lease liabilities grew marginally from 247 million US$ in 2019 to 257 million US$ in 2022, indicating that lease-based financing represents a small and consistent portion of the total capital structure.
- Short-Term Debt Obligations
- Short-term debt was recorded at 162 million US$ in 2018 and reappeared in 2022 at a higher value of 251 million US$. This increase in short-term obligations suggests a shift in the debt maturity profile toward the end of the analyzed period.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Debt | 6,231) |
| Finance lease liabilities | 257) |
| Total debt and finance lease liabilities (fair value) | 6,488) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.97 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance lease liabilities: 5.75%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 8.25% | 242) | 20) | |
| 5.25% | 472) | 25) | |
| 5.85% | 485) | 28) | |
| 7.50% | 73) | 5) | |
| 5.25% | 390) | 20) | |
| 5.88% | 325) | 19) | |
| 4.50% | 585) | 26) | |
| 7.88% | 675) | 53) | |
| 7.95% | 366) | 29) | |
| 5.60% | 1,250) | 70) | |
| 4.75% | 750) | 36) | |
| 5.00% | 750) | 38) | |
| 4.20% | 257) | 11) | |
| Total | 6,620) | 381) | |
| 5.75% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 381 ÷ 6,620 = 5.75%