SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
Date of Report (Date of earliest event report): May 31,
2000
DEVON ENERGY CORPORATION
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 001-
30176 73-1567067
(State or Other Jurisdiction of (Commission File
Number) (IRS Employer
Incorporation or Organization)
Identification Number)
20 NORTH BROADWAY, SUITE 1500, OKLAHOMA CITY, OK
73102
(Address of Principal Executive
Offices) (Zip Code)
Registrant's telephone number, including area code: (405)
235-3611
Page 1 of 3 pages
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Item 5. Other Information
Devon Energy Corporation ("Devon") filed a Form 8-K on
January 27, 2000. This Form 8-K included forward-looking
statements regarding Devon's estimated 2000 operating
results. Devon disclosed in the filing that, during 2000,
it contemplated disposing of certain properties acquired in
its August 1999 merger with PennzEnergy Company. Devon also
disclosed that any effect on the 2000 forward-looking
estimates would depend on the timing of the dispositions.
On May 31, 2000, Devon entered into an agreement to
sell one of the properties referred to in the January 27,
2000 Form 8-K. Devon has agreed to sell for $55 million its
interest in the SACROC unit and the related gas plant and
pipeline, all located in the Permian Basin of west Texas.
The sales price is effective as of April 1, 2000, and is
subject, among other things, to adjustment for operating
results through an expected closing date in late June 2000.
Devon's year-end 1999 proved oil and gas reserves from its
interest in the SACROC unit were approximately 25.3 million
barrels of oil equivalent.
Devon will cease reporting production quantities,
revenues and expenses from the related properties as of the
closing date. The following are the approximate reductions
in Devon's previously disclosed 2000 forward-looking
estimates that will result from the sale at mid-year,
assuming a June 30, 2000 closing date:
<TABLE>
<S> <C>
Oil production 1,000,000 barrels
Natural gas liquids production 400,000 barrels
Production and operating expenses $13 million
Interest expense $1 million
Depreciation, depletion and
amortization of oil and gas
properties $3 million
</TABLE>
The $3 million reduction in DD&A expense shown above
is the result of the estimated 1.4 million barrel decrease
in oil and natural gas liquids production after the property
sale, partially offset by an estimated $0.15 per barrel
increase in the consolidated DD&A rate for the last half
of 2000.
The forward-looking statements provided in this
discussion modify the estimates previously provided in
Devon's Form 8-K filed on January 27, 2000. That Form 8-K
included a discussion of specific assumptions and risks
related to those estimates. The forward-looking statements
provided herein should be read in conjunction with the
information included in that filing.
The forward-looking statements contained herein are
based on management's examination of historical operating
trends, the December 31, 1999 reserve reports of independent
petroleum engineers and other data in Devon's possession or
available from third parties. Devon cautions that its future
oil, gas and NGLs production, revenues and expenses are
subject to all of the risks and uncertainties normally
incident to the exploration for and development, production
and sale of oil and gas. These risks include, but are not
limited to, price volatility, inflation or lack of
availability of goods and services, environmental risks,
drilling risks, regulatory changes and the uncertainty
inherent in estimating future oil and gas production or
reserves. Investors are cautioned that any such statements
are not guarantees of future performance and that actual
results may differ materially from those projected in the
forward-looking statements.
SIGNATURES
Pursuant to the requirements of the Securities and
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereto
duly authorized.
DEVON ENERGY CORPORATION
By: /s/ Danny J. Heatly
Vice President - Accounting
Date: June 5, 2000
