Devon Energy Corp. (NYSE:DVN)

The analysis of the debt data over the five-year period reveals several notable trends and patterns. Overall, the composition and magnitude of debt and finance lease liabilities have exhibited fluctuations that warrant attention from a financial perspective.

Short-term debt

Short-term debt data is partially reported, with values available only for 2018 and 2022. In 2018, short-term debt stood at $162 million, while in 2022 it increased to $251 million. This indicates a rise in short-term borrowing in the latest year compared to the earliest year recorded, suggesting a potentially greater reliance on short-term liabilities in recent periods.

Current finance lease liabilities

Current finance lease liabilities commenced being reported from 2019 onwards and remained relatively stable at $7 to $8 million annually. The consistency in this category implies stable lease-related obligations without significant growth or reduction during the period.

Long-term debt

Long-term debt presents a varying trajectory. Initially, it decreased significantly from $5,785 million in 2018 to $4,294 million in 2019 and remained almost unchanged in 2020 at $4,298 million. However, it increased substantially in 2021 to $6,482 million before slightly declining to $6,189 million in 2022. This pattern suggests a strategic restructuring or refinancing of long-term obligations, with a marked elevation in debt levels starting in 2021.

Long-term finance lease liabilities

The long-term finance lease liabilities have shown a gradual but consistent increase, from $240 million in 2019 to $249 million by 2022. This trend indicates a modest growth in lease-related long-term financing over the observed periods.

Total debt and finance lease liabilities

Total debt and finance lease liabilities demonstrate a pattern consistent with individual components. Starting at $5,947 million in 2018, the total dropped considerably to $4,541 million in 2019 and remained nearly flat in 2020 at $4,550 million. However, a sharp rise occurred in 2021, reaching $6,737 million, followed by a slight decrease to $6,697 million in 2022. This overall trend reflects the interplay among short-term debt, long-term debt, and lease liabilities, with a notable increase in total liabilities since 2020.

In summary, the data suggest a strategic increase in long-term indebtedness starting in 2021, accompanied by stable finance lease obligations and an uptick in short-term debt as of 2022. The total debt and finance lease liabilities show a recovery and growth trend after an earlier decline between 2018 and 2020, which could reflect changes in the company’s financing strategy or operational requirements.