Devon Energy (NYSE: DVN) discloses major Fervo pre-IPO preferred stake
Filing Impact
Filing Sentiment
Form Type
3
Rhea-AI Filing Summary
Devon Energy Corporation, through its wholly owned subsidiary Devon Technology Ventures Holdings, L.L.C., reported indirect ownership of several series of preferred stock of Fervo Energy Co. These preferred shares are convertible into Fervo’s Class A common stock in connection with Fervo’s initial public offering.
Devon’s subsidiary holds Series D-1, D-2, D-3 and E-1 Preferred Stock, which are collectively described as Preferred Stock. Each share of these series will automatically convert into Class A common stock, par value $0.0001 per share, on a 0.7194-for-one basis immediately prior to completion of Fervo’s IPO, and the Preferred Stock has no expiration date.
The filing shows indirect positions corresponding to 35,540,812 underlying shares of Class A common stock for the Series D-1 Preferred Stock, 4,766,557 underlying shares for Series D-2, 3,237,900 for Series D-3, and 6,118,752 for Series E-1, reflecting Devon’s significant pre-IPO stake held through preferred securities.
Positive
- None.
Negative
- None.
Insider Trade Summary
4 transactions reported
Mixed
4 txns
Insider
DEVON ENERGY CORP/DE
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Series D-1 Preferred Stock | -- | -- | -- |
| holding | Series D-2 Preferred Stock | -- | -- | -- |
| holding | Series D-3 Preferred Stock | -- | -- | -- |
| holding | Series E-1 Preferred Stock | -- | -- | -- |
Holdings After Transaction:
Series D-1 Preferred Stock — 35,540,812 shares (Indirect, See footnote);
Series D-2 Preferred Stock — 4,766,557 shares (Indirect, See footnote);
Series D-3 Preferred Stock — 3,237,900 shares (Indirect, See footnote);
Series E-1 Preferred Stock — 6,118,752 shares (Indirect, See footnote)
Footnotes (1)
- Devon Technology Ventures Holdings, L.L.C., a wholly-owned subsidiary of Devon Energy Corporation ("Devon"), is the record holder of the securities listed in this Form 3. Immediately prior to the completion of the Issuer's initial public offering, each share of Series D-1 Preferred Stock, Series D-2 Preferred Stock, Series D-3 Preferred Stock, and Series E-1 Preferred Stock (collectively, the "Preferred Stock") will automatically convert into one share of the Issuer's Class A common stock, par value $0.0001 per share (the "Class A Common Stock"), on a 0.7194-for-one basis. The shares of Preferred Stock have no expiration date.
Key Figures
Series D-1 underlying shares: 35,540,812 Class A shares
Series D-2 underlying shares: 4,766,557 Class A shares
Series D-3 underlying shares: 3,237,900 Class A shares
+2 more
5 metrics
Series D-1 underlying shares
35,540,812 Class A shares
Underlying Class A common stock from Series D-1 Preferred Stock as reported
Series D-2 underlying shares
4,766,557 Class A shares
Underlying Class A common stock from Series D-2 Preferred Stock as reported
Series D-3 underlying shares
3,237,900 Class A shares
Underlying Class A common stock from Series D-3 Preferred Stock as reported
Series E-1 underlying shares
6,118,752 Class A shares
Underlying Class A common stock from Series E-1 Preferred Stock as reported
Preferred conversion ratio
0.7194-for-one
Conversion rate of Preferred Stock into Class A common stock before IPO
Key Terms
Series D-1 Preferred Stock, Class A common stock, initial public offering, 0.7194-for-one basis, +1 more
5 terms
Series D-1 Preferred Stock financial
"each share of Series D-1 Preferred Stock, Series D-2 Preferred Stock, Series D-3 Preferred Stock, and Series E-1 Preferred Stock"
Class A common stock financial
"will automatically convert into one share of the Issuer's Class A common stock, par value $0.0001 per share"
Class A common stock is a category of a company’s shares that carries a specific set of ownership rights—most commonly defined voting power and claims on dividends—set out in the company’s charter. For investors it matters because the class determines how much influence you have over corporate decisions, the share’s likely dividend and trading behavior, and how it compares in value to other share classes, like choosing a particular seat with different privileges at the company’s decision-making table.
initial public offering financial
"Immediately prior to the completion of the Issuer's initial public offering, each share of Series D-1 Preferred Stock"
An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.
0.7194-for-one basis financial
"will automatically convert into one share of the Issuer's Class A common stock ... on a 0.7194-for-one basis"
Preferred Stock financial
"Series D-1 Preferred Stock, Series D-2 Preferred Stock, Series D-3 Preferred Stock, and Series E-1 Preferred Stock (collectively, the "Preferred Stock")"
Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.
FAQ
What stake does Devon Energy report in Fervo Energy Co (DVN, FRVO)?
Devon Energy, through subsidiary Devon Technology Ventures Holdings, reports indirect holdings in multiple Fervo preferred stock series. These positions correspond to millions of underlying Class A common shares that will convert immediately before Fervo’s initial public offering, reflecting a sizeable pre-IPO ownership.
What types of Fervo securities does Devon Energy indirectly hold?
Devon’s subsidiary holds Series D-1, Series D-2, Series D-3 and Series E-1 Preferred Stock of Fervo Energy Co. Each of these preferred series is collectively described as Preferred Stock and is convertible into Fervo’s Class A common stock in connection with the company’s initial public offering.
What is the conversion rate of Fervo’s preferred stock into Class A common stock?
Each share of Series D-1, D-2, D-3 and E-1 Preferred Stock will automatically convert into Fervo’s Class A common stock on a 0.7194-for-one basis. This conversion occurs immediately prior to completion of the company’s initial public offering, based on the disclosure provided.