14.	Debt and Related Expenses

See below for a summary of debt instruments and balances. The notes and debentures are senior, unsecured obligations of Devon.

	December 31, 2016			December 31, 2015
	(Millions)
Devon debt:
Commercial paper	$	—		$	626
Floating rate due December 15, 2016		—			350
8.25% due July 1, 2018 ⁽¹⁾⁽²⁾		20			125
2.25% due December 15, 2018 ⁽¹⁾		95			750
6.30% due January 15, 2019⁽¹⁾		162			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 ⁽¹⁾		485			850
7.50% due September 15, 2027 ⁽¹⁾⁽²⁾		73			150
7.875% due September 30, 2031 ⁽¹⁾⁽³⁾		1,059			1,250
7.95% due April 15, 2032 ⁽¹⁾		789			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		(30	)		(28	)
Debt issuance costs		(44	)		(57	)
Total Devon debt		6,859			9,966
EnLink and General Partner debt:
Credit facilities		148			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		9			13
Debt issuance costs		(25	)		(24	)
Total EnLink and General Partner debt		3,295			3,066
Total debt		10,154			13,032
Less amount classified as short-term debt⁽⁴⁾		—			976
Total long-term debt	$	10,154		$	12,056

(1)	These senior notes were included in 2016 tender offer redemptions discussed below.

(2)	These instruments were assumed by Devon in April 2003 in conjunction with the merger with Ocean Energy. The fair value and effective rates of these 8.25% notes and 7.50% notes at the time assumed was $147 million and 5.5%, respectively, and $169 million and 6.5%, respectively.

(3)	Issued in October 2001, these are unsecured and unsubordinated obligations of Devon Financing, a wholly owned finance subsidiary of Devon. These instruments are fully and unconditionally guaranteed by Devon.

(4)	2015 short-term debt consists of commercial paper balances and floating rate debt that was retired upon maturity in December 2016.

Debt maturities as of December 31, 2016, excluding debt issuance costs, premiums and discounts, are as follows (millions):

2017	$	—
2018		115
2019		590
2020		120
2021		500
Thereafter		8,919
Total	$	10,244

Credit Lines

Devon has a $3.0 billion Senior Credit Facility. The facility matures as follows: $30 million on October 24, 2017, $164 million on October 24, 2018 and the remaining $2.8 billion on October 24, 2019. Amounts borrowed under the Senior Credit Facility may, at the election of Devon, bear interest at various fixed rate options for periods of up to twelve months. Such rates are generally less than the prime rate. However, Devon may elect to borrow at the prime rate. The Senior Credit Facility currently provides for an annual facility fee of $7.6 million. As of December 31, 2016, Devon had $140 million in outstanding letters of credit, including $57 million in outstanding letters of credit under the Senior Credit Facility. There were no borrowings under the Senior Credit Facility as of December 31, 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%. The credit agreement contains definitions of total funded debt and total capitalization that include adjustments to the respective amounts reported in the accompanying consolidated financial statements. Also, total capitalization is adjusted to add back noncash financial write-downs such as asset impairments. As of December 31, 2016, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 18.7%.

Commercial Paper

Devon’s Senior Credit Facility supports its $3.0 billion of short-term credit under its commercial paper program. Commercial paper debt generally has a maturity of between 1 and 90 days, although it can have a maturity of up to 365 days, and bears interest at rates agreed to at the time of the borrowing. The interest rate is generally based on a standard index such as the Federal Funds Rate, LIBOR or the money market rate as found in the commercial paper market. During 2016, Devon reduced commercial paper borrowings by $626 million. As of December 31, 2016, Devon had no outstanding commercial paper borrowings.

Retirement of Senior Notes

During 2016, Devon completed tender offers to repurchase $2.1 billion of debt securities, using proceeds from the asset divestitures discussed in Note 2. Devon recognized a loss on early retirement of debt, primarily consisting of $265 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.

In November 2014, Devon redeemed $1.9 billion of senior notes prior to their scheduled maturity, primarily with proceeds received from asset divestitures. Devon recognized a loss on the early retirement of debt, primarily consisting of $40 million in cash retirement costs and other noncash charges. These costs are included in net financing costs in the consolidated comprehensive statement of earnings.

Issuance of Senior Notes

In December 2015, in conjunction with the announcement of the Powder River Basin and STACK acquisitions, Devon issued $850 million of 5.85% senior notes due 2025 that are unsecured and unsubordinated obligations. Devon used the net proceeds to partially fund the cash portion of these acquisitions.

In June 2015, Devon issued $750 million of 5.0% senior notes due 2045 that are unsecured and unsubordinated obligations. Devon used the net proceeds to repay the floating rate senior notes that matured on December 15, 2015, as well as outstanding commercial paper balances.

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 that will mature on March 6, 2020. As of December 31, 2016, there were $12 million in outstanding letters of credit and $120 million outstanding borrowings, with a weighted-average borrowing rate of 2.3%, under the $1.5 billion credit facility. The General Partner has a $250 million revolving credit facility that will mature on March 7, 2019. As of December 31, 2016, the General Partner had $28 million outstanding borrowings under the $250 million credit facility at a weighted average borrowing rate of 3.4%. EnLink and the General Partner were in compliance with all financial covenants in their respective credit facilities as of December 31, 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.

In May 2015, EnLink issued $900 million principal amount of unsecured senior notes, consisting of $750 million principal amount of its 4.15% senior notes due 2025 and an additional $150 million principal amount of its 5.05% senior notes due 2045. EnLink used the net proceeds to repay outstanding revolving credit facility borrowings, for capital expenditures and for general operations.

Net Financing Costs

The following schedule includes the components of net financing costs.

	Year Ended December 31,
	2016			2015			2014
	(Millions)
Devon net financing costs:
Interest based on debt outstanding	$	488		$	450		$	468
Early retirement of debt		269			—			48
Capitalized interest		(64	)		(54	)		(58	)
Other		21			14			15
Total Devon net financing costs		714			410			473
EnLink net financing costs:
Interest based on debt outstanding		144			115			64
Interest accretion on deferred installment payment		52			—			—
Other		(6	)		(8	)		(11	)
Total EnLink net financing costs		190			107			53
Total net financing costs	$	904		$	517		$	526