14.	Debt and Related Expenses

A summary of debt is as follows:

	September 30, 2016			December 31, 2015
	(Millions)
Devon debt:
Commercial paper	$	—		$	626
Floating rate due December 15, 2016		350			350
8.25% due July 1, 2018		28			125
2.25% due December 15, 2018		110			750
6.30% due January 15, 2019		198			700
4.00% due July 15, 2021		500			500
3.25% due May 15, 2022		1,000			1,000
5.85% due December 15, 2025		850			850
7.50% due September 15, 2027		150			150
7.875% due September 30, 2031		1,250			1,250
7.95% due April 15, 2032		1,000			1,000
5.60% due July 15, 2041		1,250			1,250
4.75% due May 15, 2042		750			750
5.00% due June 15, 2045		750			750
Net discount on debentures and notes		(28	)		(28	)
Debt issuance costs		(49	)		(57	)
Total Devon debt		8,109			9,966
EnLink debt:
Credit facilities		98			414
2.70% due April 1, 2019		400			400
7.125% due June 1, 2022		163			163
4.40% due April 1, 2024		550			550
4.15% due June 1, 2025		750			750
4.85% due July 15, 2026		500			—
5.60% due April 1, 2044		350			350
5.05% due April 1, 2045		450			450
Net premium on debentures and notes		10			13
Debt issuance costs		(26	)		(24	)
Total EnLink debt		3,245			3,066
Total debt		11,354			13,032
Less amount classified as short-term debt⁽¹⁾		350			976
Total long-term debt	$	11,004		$	12,056

(1)	Short-term debt as of September 30, 2016 consists of $350 million of floating rate due on December 15, 2016. Short-term debt as of December 31, 2015 consists of $626 million of commercial paper and $350 million floating rate due on December 15, 2016.

Commercial Paper

During the nine months ended September 30, 2016, Devon reduced commercial paper borrowings by $626 million. As of September 30, 2016, Devon had no outstanding commercial paper borrowings.

Retirement of Senior Notes

In August 2016, Devon completed tender offers to repurchase $1.2 billion of debt securities, using proceeds from the asset divestitures discussed in Note 2. The redemption includes $97 million of the $125 million 8.25% senior notes due July 2018, $640 million of the $750 million 2.25% senior notes due December 2018 and $502 million of the $700 million 6.3% senior notes due January 2019. Devon recognized a loss on early retirement of debt, primarily consisting of $82 million in cash retirement costs and other fees. These costs, along with other minimal noncash charges associated with retiring the debt, are included in net financing costs in the consolidated comprehensive statements of earnings.

Credit Lines

Devon has a $3.0 billion Senior Credit Facility. As of September 30, 2016, Devon had $125 million in outstanding letters of credit, including $58 million in outstanding letters of credit under the Senior Credit Facility. There were no outstanding borrowings under the Senior Credit Facility at September 30, 2016. The Senior Credit Facility contains only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65%. Under the terms of the credit agreement, total capitalization is adjusted to add back noncash financial write-downs such as full cost ceiling impairments or goodwill impairments. As of September 30, 2016, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 20.6%.

EnLink Debt

All of EnLink’s and the General Partner’s debt is non-recourse to Devon.

EnLink has a $1.5 billion unsecured revolving credit facility. As of September 30, 2016, there were $11 million in outstanding letters of credit and $75 million in outstanding borrowings at an average rate of 2.15% under the $1.5 billion credit facility. The General Partner has a $250 million secured revolving credit facility. As of September 30, 2016, the General Partner had $23 million in outstanding borrowings at an average rate of 2.28%. EnLink and the General Partner were in compliance with all financial covenants in their respective credit facilities as of September 30, 2016.

In July 2016, EnLink issued $500 million of 4.85% unsecured senior notes due 2026. EnLink used the net proceeds to repay outstanding borrowings under its revolving credit facility and for general partnership purposes.

Net Financing Costs

The following schedule includes the components of net financing costs.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(Millions)
Interest based on debt outstanding	$	157		$	147		$	481		$	413
Early retirement of debt		84			—			84			—
Capitalized interest		(18	)		(17	)		(53	)		(46	)
Interest accretion on deferred installment payment - see Note 2		13			—			39			—
Other fees and expenses		9			8			24			16
Interest expense		245			138			575			383
Interest income		(2	)		(2	)		(5	)		(5	)
Net financing costs	$	243		$	136		$	570		$	378