S&P: Devon Energy unaffected

Standard & Poor's said Tuesday that a statement by Devon Energy Corp.'s (BBB/stable/A-2) CEO at an equity conference that it will pursue share repurchases as soon as this year will not immediately affect the ratings or outlook on the company.

The announcement follows by a month the company's decision to increase dividends by about $50 million annually.

S&P said it expects that Devon will not repurchase shares until the company's debt maturities through 2006 are addressed in entirety. If the company redirects cash earmarked for debt reduction to share repurchases, or further increases dividends to a level that jeopardizes the company's ability to fully repay outstanding debt maturing through 2006, S&P would likely lower its rating and/or outlook on Devon.

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