Devon Energy (DVN)

 

Our estimated 2009 cash uses, including our drilling and development activities and retirement of maturing debt, are expected to be funded primarily through a combination of our existing cash balances and operating cash flow. Any remaining cash uses could be funded by increasing our borrowings under our commercial paper program or with borrowings from the available capacity under our credit facilities, which was approximately $3.1 billion as of January 31, 2009. The amount of operating cash flow to be generated during 2009 is uncertain due to the factors affecting revenues and expenses as previously cited. However, we expect our combined capital resources to be adequate to fund our capital expenditures and other cash uses for 2009.

 

If significant other acquisitions or other unplanned capital requirements arise during the year, we could utilize our existing credit facilities and/or seek to establish and utilize other sources of financing.

 

 

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risks. The term “market risk” refers to the risk of loss arising from adverse changes in oil, gas and NGL prices, interest rates and foreign currency exchange rates. The following disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures. All of our market risk sensitive instruments were entered into for purposes other than speculative trading.

 

Our estimated 2008 cash uses, including our drilling and development activities, retirement of debt and repurchase of common stock, are expected to be funded primarily through a combination of existing cash and short-term investments, operating cash flow and proceeds from the sale of our assets in West Africa. Any remaining cash uses could be funded by increasing our borrowings under our commercial paper program or with borrowings from the available capacity under our credit facilities, which was approximately $1.3 billion at December 31, 2007. The amount of operating cash flow to be generated during 2008 is uncertain due to the factors affecting revenues and expenses as previously cited. However, we expect our combined capital resources to be more than adequate to fund our anticipated capital expenditures and other cash uses for 2008. If significant acquisitions or other unplanned capital requirements arise during the year, we could utilize our existing credit facilities and/or seek to establish and utilize other sources of financing.

 

Our $372 million of short-term investments as of December 31, 2007 consisted entirely of auction rate securities collateralized by student loans which are substantially guaranteed by the United States government. Subsequent to December 31, 2007, we have reduced our auction rate securities holdings to $153 million. However, beginning on February 8, 2008, we experienced difficulty selling additional securities due to the failure of the auction mechanism which provides liquidity to these securities. The securities for which auctions have failed will continue to accrue interest and be auctioned every 28 days until the auction succeeds, the issuer calls the securities or the securities mature. Accordingly, there may be no effective mechanism for selling these securities, and the securities we own may become long-term investments. At this time, we do not believe such securities are impaired or that the failure of the auction mechanism will have a material impact on our liquidity.

 

 

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risks. The term “market risk” refers to the risk of loss arising from adverse changes in oil, gas and NGL prices, interest rates and foreign currency exchange rates. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures. All of our market risk sensitive instruments were entered into for purposes other than speculative trading.

 

 

Our estimated 2008 cash uses, including our drilling and
development activities, retirement of debt and repurchase of
common stock, are expected to be funded primarily through a
combination of existing cash and short-term investments,
operating cash flow and proceeds from the sale of our assets in
West Africa. Any remaining cash uses could be funded by
increasing our borrowings under our commercial paper program or
with borrowings from the available capacity under our credit
facilities, which was approximately $1.3 billion at
December 31, 2007. The amount of operating cash flow to be
generated during 2008 is uncertain due to the factors affecting
revenues and expenses as previously cited. However, we expect
our combined capital resources to be more than adequate to fund
our anticipated capital expenditures and other cash uses for
2008. If significant acquisitions or other unplanned capital
requirements arise during the year, we could utilize our
existing credit facilities
and/or seek
to establish and utilize other sources of financing.

 

Our $372 million of short-term investments as of
December 31, 2007 consisted entirely of auction rate
securities collateralized by student loans which are
substantially guaranteed by the United States government.
Subsequent to December 31, 2007, we have reduced our
auction rate securities holdings to $153 million. However,
beginning on February 8, 2008, we experienced difficulty
selling additional securities due to the failure of the auction
mechanism which provides liquidity to these securities. The
securities for which auctions have failed will continue to
accrue interest and be auctioned every 28 days until the
auction succeeds, the issuer calls the securities or the
securities mature. Accordingly, there may be no effective
mechanism for selling these securities, and the securities we
own may become long-term investments. At this time, we do not
believe such securities are impaired or that the failure of the
auction mechanism will have a material impact on our liquidity.

 

 

The primary objective of the following information is to provide
forward-looking quantitative and qualitative information about
our potential exposure to market risks. The term “market
risk” refers to the risk of loss arising from adverse
changes in oil, gas and NGL prices, interest rates and foreign
currency exchange rates. The disclosures are not meant to be
precise indicators of expected future losses, but rather
indicators of reasonably possible losses. This forward-looking
information provides indicators of how we view and manage our
ongoing market risk exposures. All of our market risk sensitive
instruments were entered into for purposes other than
speculative trading.

 

 

Our estimated 2008 cash uses, including our drilling and development activities, retirement of debt and repurchase of common stock, are expected to be funded primarily through a combination of existing cash and short-term investments, operating cash flow and proceeds from the sale of our assets in West Africa. Any remaining cash uses could be funded by increasing our borrowings under our commercial paper program or with borrowings from the available capacity under our credit facilities, which was approximately $1.3 billion at December 31, 2007. The amount of operating cash flow to be generated during 2008 is uncertain due to the factors affecting revenues and expenses as previously cited. However, we expect our combined capital resources to be more than adequate to fund our anticipated capital expenditures and other cash uses for 2008. If significant acquisitions or other unplanned capital requirements arise during the year, we could utilize our existing credit facilities and/or seek to establish and utilize other sources of financing.

 

Our $372 million of short-term investments as of December 31, 2007 consisted entirely of auction rate securities collateralized by student loans which are substantially guaranteed by the United States government. Subsequent to December 31, 2007, we have reduced our auction rate securities holdings to $153 million. However, beginning on February 8, 2008, we experienced difficulty selling additional securities due to the failure of the auction mechanism which provides liquidity to these securities. The securities for which auctions have failed will continue to accrue interest and be auctioned every 28 days until the auction succeeds, the issuer calls the securities or the securities mature. Accordingly, there may be no effective mechanism for selling these securities, and the securities we own may become long-term investments. At this time, we do not believe such securities are impaired or that the failure of the auction mechanism will have a material impact on our liquidity.

 

 

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risks. The term “market risk” refers to the risk of loss arising from adverse changes in oil, gas and NGL prices, interest rates and foreign currency exchange rates. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures. All of our market risk sensitive instruments were entered into for purposes other than speculative trading.

 

 

Our estimated 2008 cash uses, including our drilling and
development activities, retirement of debt and repurchase of
common stock, are expected to be funded primarily through a
combination of existing cash and short-term investments,
operating cash flow and proceeds from the sale of our assets in
West Africa. Any remaining cash uses could be funded by
increasing our borrowings under our commercial paper program or
with borrowings from the available capacity under our credit
facilities, which was approximately $1.3 billion at
December 31, 2007. The amount of operating cash flow to be
generated during 2008 is uncertain due to the factors affecting
revenues and expenses as previously cited. However, we expect
our combined capital resources to be more than adequate to fund
our anticipated capital expenditures and other cash uses for
2008. If significant acquisitions or other unplanned capital
requirements arise during the year, we could utilize our
existing credit facilities
and/or seek
to establish and utilize other sources of financing.

 

Our $372 million of short-term investments as of
December 31, 2007 consisted entirely of auction rate
securities collateralized by student loans which are
substantially guaranteed by the United States government.
Subsequent to December 31, 2007, we have reduced our
auction rate securities holdings to $153 million. However,
beginning on February 8, 2008, we experienced difficulty
selling additional securities due to the failure of the auction
mechanism which provides liquidity to these securities. The
securities for which auctions have failed will continue to
accrue interest and be auctioned every 28 days until the
auction succeeds, the issuer calls the securities or the
securities mature. Accordingly, there may be no effective
mechanism for selling these securities, and the securities we
own may become long-term investments. At this time, we do not
believe such securities are impaired or that the failure of the
auction mechanism will have a material impact on our liquidity.

 

 

The primary objective of the following information is to provide
forward-looking quantitative and qualitative information about
our potential exposure to market risks. The term “market
risk” refers to the risk of loss arising from adverse
changes in oil, gas and NGL prices, interest rates and foreign
currency exchange rates. The disclosures are not meant to be
precise indicators of expected future losses, but rather
indicators of reasonably possible losses. This forward-looking
information provides indicators of how we view and manage our
ongoing market risk exposures. All of our market risk sensitive
instruments were entered into for purposes other than
speculative trading.

 

 

Our estimated 2007 cash uses, including our drilling and development activities, retirement of debt and repurchase of common stock, are expected to be funded primarily through a combination of operating cash flow and proceeds from the sale of our assets in Egypt and West Africa. Any remaining cash uses could be funded by increasing our borrowings under our commercial paper program or with borrowings from the available capacity under our credit facility, which was $408 million at December 31, 2006. The amount of operating cash flow to be generated during 2007 is uncertain due to the factors affecting revenues and expenses as previously cited. However, we expect our combined capital resources to be more than adequate to fund our anticipated capital expenditures and other cash uses for 2007.

 

If significant other acquisitions or other unplanned capital requirements arise during the year, we could utilize our existing credit facility and/or seek to establish and utilize other sources of financing.

 

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risks. The term “market risk” refers to the risk of loss arising from adverse changes in oil, gas and NGL prices, interest rates and foreign currency exchange rates. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures. All of our market risk sensitive instruments were entered into for purposes other than speculative trading.