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.

• Russia-Ukraine conflict affecting commodity prices.
• Israel-Gaza and Hezbollah conflicts affecting commodity prices.
• Hostilities in Yemen and the Red Sea affecting commodity prices.
• Political and civil unrest in Venezuela affecting commodity prices.
• Department of the Interior adopted a final rule revising terms for future federal leases and wells, including enhanced bonding requirements and increased royalty rates, rental rates, and minimum bids.April 2024
• EPA finalized methane rules OOOOb and OOOOc for new and existing oil and gas facilities, including a 95% capture and control requirement and a third-party 'super emitter' reporting program.December 2023
• Inflation Reduction Act imposed a methane emissions fee on certain petroleum and natural gas facilities, though the current administration delayed it until 2034.
• EPA added well blowouts and other abnormal events as new reporting categories under its GHG Reporting Program.May 2024
• SEC finalized climate-related disclosure rules that were stayed pending judicial review, and the current administration has declined to defend the rules.March 2024
• California enacted climate disclosure legislation.October 2023
• U.S. re-withdrew from the Paris Agreement and announced withdrawal from the UN Framework Convention on Climate Change.January 2025
• New York passed the Climate Superfund Law, and we have been identified as a potentially responsible party; Vermont passed a similar law.December 2024
• European Union members agreed to a natural gas price-cap framework.December 2022
• European Union approved fossil fuel import standards with methane intensity threshold requirements.May 2024
• Merger Agreement with Coterra may be terminated if the Merger is not consummated by August 1, 2026, subject to certain extensions.August 1, 2026
• Upon termination under certain circumstances, Devon may be required to pay Coterra a termination fee of $865 million.
• Total indebtedness of $8.4 billion as of December 31, 2025.December 31, 2025
• New Mexico implemented protocols requiring operators to take actions with respect to salt-water disposal wells within a specified proximity of certain seismic activity.
• Railroad Commission of Texas suspended all disposal well permits that inject into deep strata within the Northern Culberson-Reeves area due to increasing seismicity concerns.