DEVON ENERGY CORP/DE (DVN) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that DEVON ENERGY CORP/DE surfaced in its latest filing.

• In April 2024, the Department of the Interior adopted a final rule enhancing bonding requirements and increasing royalty rates, rental rates, and minimum bids on federal lands.April 2024
• In December 2023, the EPA finalized more stringent methane rules for new, modified, and reconstructed facilities (OOOOb) and standards for existing sources (OOOOc), including enhanced leak detection, zero-emission requirements for certain devices, and 95% emission reduction through capture and control systems.December 2023
• The Inflation Reduction Act imposed a new charge on excess methane emissions from certain petroleum and natural gas facilities starting in 2024, annually increasing through 2026, but the current administration delayed the fee until 2034.2024
• In May 2024, the EPA adopted amendments to its GHG Reporting Program, adding well blowouts and other abnormal events as new categories of sources for GHG emissions reporting.May 2024
• In March 2024, the SEC finalized rules requiring extensive climate-related disclosures, which have been stayed pending judicial review, and the current administration has declined to defend the rules.March 2024
• In October 2023, California enacted legislation requiring extensive climate-related disclosures for companies doing business in California.October 2023
• The European Union adopted the Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, imposing expansive sustainability reporting and due diligence requirements potentially applicable to the company.
• In December 2024, New York passed its 'Climate Superfund Law' assessing a fee on emitters with a sufficient nexus to the state that released more than one billion tons of carbon dioxide during 2000–2018, and the company has been identified as a potentially responsible party.December 2024
• In May 2024, Vermont passed a Climate Superfund law similar to New York's.May 2024
• In January 2025, the U.S. administration re-withdrew the United States from the Paris Agreement.January 2025
• In January 2026, the U.S. announced withdrawal from the UNFCCC.January 2026
• In December 2022, members of the European Union agreed to a price-cap framework for natural gas trading.December 2022
• During 2021 and 2022, former President Biden authorized several releases from the U.S. Strategic Petroleum Reserve.2021-2022
• In May 2024, the European Union approved new regulations imposing fossil fuel import standards, including disclosure, emission mitigation work practices, and methane intensity threshold requirements.May 2024
• The Merger Agreement between Devon and Coterra contains termination rights, including if the Merger is not consummated by August 1, 2026.August 1, 2026
• Upon termination of the Merger Agreement under certain circumstances, Devon may be required to pay Coterra a termination fee equal to $865 million.
• As of December 31, 2025, the company had total indebtedness of $8.4 billion, and any credit downgrades could increase its interest rate under the Senior Credit Facility and the Term Loan.December 31, 2025