16.	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, 2017			December 31, 2016
Devon debt:
8.25% due July 1, 2018 ⁽¹⁾⁽²⁾	$	20		$	20
2.25% due December 15, 2018 ⁽¹⁾		95			95
6.30% due January 15, 2019⁽¹⁾		162			162
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			485
7.50% due September 15, 2027 ⁽¹⁾⁽²⁾		73			73
7.875% due September 30, 2031 ⁽¹⁾⁽³⁾		1,059			1,059
7.95% due April 15, 2032 ⁽¹⁾		789			789
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	)		(30	)
Debt issuance costs		(39	)		(44	)
Total Devon debt		6,864			6,859
EnLink and General Partner debt:
Credit facilities		74			148
2.70% due April 1, 2019		400			400
7.125% due June 1, 2022		—			163
4.40% due April 1, 2024		550			550
4.15% due June 1, 2025		750			750
4.85% due July 15, 2026		500			500
5.60% due April 1, 2044		350			350
5.05% due April 1, 2045		450			450
5.45% due June 1, 2047		500			—
Net premium (discount) on debentures and notes		(6	)		9
Debt issuance costs		(26	)		(25	)
Total EnLink and General Partner debt		3,542			3,295
Total debt		10,406			10,154
Less amount classified as short-term debt⁽⁴⁾		115			—
Total long-term debt	$	10,291		$	10,154

(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.These instruments are the unsecured and unsubordinated obligations of Devon OEI Operating, L.L.C. and are guaranteed by Devon Energy Production Company, L.P. Each of these entities is a wholly-owned subsidiary of Devon.

(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)	2017 short-term debt consists of $20 million of 8.25% senior notes due July 1, 2018 and $95 million of 2.25% senior notes due December 15, 2018.

Debt maturities as of December 31, 2017, excluding debt issuance costs, premiums and discounts, are as follows:

	Devon		EnLink		Total
2018	$	115	$	—	$	115
2019		162		474		636
2020		—		—		—
2021		500		—		500
2022		1,000		—		1,000
Thereafter		5,156		3,100		8,256
Total	$	6,933	$	3,574	$	10,507

Credit Lines

Devon has a $3.0 billion Senior Credit Facility. The facility matures as follows: $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 $7.4 million. As of December 31, 2017, Devon had $59 million in outstanding letters of credit under the Senior Credit Facility. There were no borrowings under the Senior Credit Facility as of December 31, 2017.

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, 2017, Devon was in compliance with this covenant with a debt-to-capitalization ratio of 27.2%. Devon’s change to successful efforts did not materially change this ratio.

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. As of December 31, 2017, 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 3. 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.

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, 2017, there were $10 million in outstanding letters of credit and no outstanding borrowings 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, 2017, the General Partner had $74 million in outstanding borrowings under the $250 million credit facility at a weighted average borrowing rate of 3.2%. EnLink and the General Partner were in compliance with all financial covenants in their respective credit facilities as of December 31, 2017.

In the second quarter of 2017, EnLink issued $500 million of 5.45% unsecured senior notes due in 2047. The proceeds were used to repay outstanding borrowings under its revolving credit facility and for general partnership purposes. Additionally, in the second quarter of 2017, EnLink redeemed its $163 million 7.125% senior unsecured notes due in 2022. EnLink redeemed the notes at 103.6% of the principal amount, plus accrued unpaid interest, for aggregate cash consideration of $174 million, which resulted in a gain on extinguishment of debt of $9 million during the second quarter of 2017. The gain is included in net financing costs in the consolidated comprehensive statement of earnings.

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.

Financing Costs, Net

The following schedule includes the components of net financing costs.

	Year Ended December 31,
	2017			2016			2015
Devon net financing costs:
Interest based on debt outstanding	$	390		$	488		$	450
Early retirement of debt		—			269			—
Capitalized interest		(69	)		(61	)		(52	)
Other		(4	)		21			14
Total Devon net financing costs		317			717			412
EnLink net financing costs:
Interest based on debt outstanding		167			144			115
Interest accretion on deferred installment payment		26			52			—
Early retirement of debt		(9	)		—			—
Other		(3	)		(6	)		(8	)
Total EnLink net financing costs		181			190			107
Total net financing costs	$	498		$	907		$	519