You don't know what you are talking about. You don't know anything about Devon. They are a great company with plenty of money in their pockets to do whatever they want. NOTHING WILL GET SCALED DOWN! IT WON"T BE DELAYED! IT WILL HAPPEN! GET USED TO IT!

OKCBusiness - Oklahoma City Business News (http://okcbusiness.com/industry_article.asp?cID=7&aID=77484608.3488371.598247.1133209.310531.684&aID2=46010)


Nov. 5, Oklahoma City’s Devon Energy Corporation reported 2008 third-quarter results. For the quarter that ended Sept. 30, the energy company’s net earnings totaled $2.6 billion or $5.92 per common share ($5.87 per diluted share), a 256-percent increase versus the 2007 third quarter.

Compared to the 2006 third-quarter, Devon’s 2007 third-quarter net earnings increased $30 million from $705 million to $735 million and their common share jumped from $1.59 to $1.65 ($1.57 to $1.63 per common diluted share). The increase from $735 million to $2.6 billion ($1.65 to $5.92 per common share) is the company’s highest ever quarterly earnings, officials said.

$2.6 billion in NET earnings in a three month period earlier this year. Do you think Devon can afford to pay for a measly billion-dollar building over the next four years? Yes.

[QUOTE=jbrown84;187196.Anyone know why Devon Tower is not listed at Emporis.com?[/QUOTE]

Emporis is undergoing an upgrade and lots of buildings are missing as part of the their database upgrade and data verification efforts. For awhile, all of the buildings in many cities were completely gone.

This headquarters will be Larry Nichols legacy. He wants to see it built before he retires.

He has a plan for this building that insures that Devon is locked in to OKC long after he retires.

Nothing will keep a company in OKC like a billion dollar real estate investment.

You don't know what you are talking about. You don't know anything about Devon. They are a great company with plenty of money in their pockets to do whatever they want. NOTHING WILL GET SCALED DOWN! IT WON"T BE DELAYED! IT WILL HAPPEN! GET USED TO IT!



Simmer down. I want Devon Tower to be built, I'm just saying that with all this economic turmoil it's putting me on the side of doubt.

I think since it is not a developer-based project, being that it is for one specific client, they have talked about building it with cash and with the cash flow that they have and looks like would still have even in a soft energy market that it stands a better chance of getting built than many other projects of similar scale. Most of those other projects are developer-based spec projects that are reliant on financing and most of those are what has been stalled or halted.

right blue, devon is not financing this building. They have TONS of cash on hand and their market capitalization is just crazy!!!

devon will build this building - Im just wondering why it is taking the city so long to approve everything? Just get it done!

It is approved.

devon will build this building - Im just wondering why it is taking the city so long to approve everything? Just get it done!

It takes time to design a building like this. Hold your horses.

This headquarters will be Larry Nichols legacy.

You can tell he also views this as a bit of a philanthropic project as well. He sees it as a way for a private business to significantly impact the community in a way that goes beyond a donation. He wants to take an up and coming district in an up and coming city and inject hundreds of millions of dollars into the area while solidifying his companies long term presence in his home community.

Now, I am sure he also knows that sinking his company in favor of building a building and improving downtown at large is not a good move for the long term health of Oklahoma City. He is not going to get OKC or downtown in trouble just to see this built. That is actually why they have waited so long to do this. They could have down it a few years ago, but he didn't feel that it would have a net positive affect on Oklahoma City's downtown. So, if it does get scaled back in any way, you can rest assured that it will be for the greater good.

That being said, I think it would take a lot for that happen and, really, this thing could be scaled back by 25% and it would still have huge impact on the city and would actually be closer to what most of us thought before the announcement and, if you remember, I think most of us were ecstatic even at that level.

This building is based on projected long-term growth of Devon, not on current market conditions. As previously mentioned, Devon has a remarkable amount of cash on hand, and will not require a penny of financing to build it. Based on everything I have heard, the economic downturn has made Larry Nichols even MORE determined to get this building completed, because of what it will do for Oklahoma City and long-term for the company.

The other thing that bodes well for the building is that labor and materials costs are currently in freefall, which could make the project far less expensive.

There is a factoid out there, I think in Steve's book, that points out that during the energy bust of the eighties/nineties, Devon was the only major energy company that didn't lay off a single employee. Is that right Steve? If so, that is remarkable, and yet another endorsement for the company and the man running it.

Larry Nichols built his substantial reputation on being financially conservative and prudent in all business manners. This building was NOT a rash decision based on wildly fluctuating oil prices, driven by speculation.

urbanized - Great way to put it into perspective! I'm still so super excited about this project! Kudos to Larry Nichols for having the foresight to handle this entire project in a responsible manner, and for giving Oklahoma City something we can be proud of! It will definitely be the crown jewel of Downtown Oklahoma City, and I can't wait!! :)

This building was NOT a rash decision based on wildly fluctuating oil prices, driven by speculation.

Good point. This has been in the works in some for for 10 years probably.

Good point. This has been in the works in some for for 10 years probably.

probably 2-3 years.

Meant to type "in some form".

In other words, it's been on his radar for 7-10 years probably. More specific details like the location, size, etc are obviously more recent like the last couple years.

guys, I meant - why is the city taking so long to sell the property, and approve the TIF. I suppose it is procedure, but they heard about the TIF, why wasn't there an immediate vote? Why wait to Dec 16?

I say, someone (a hometown industry leader by the way) is offering to build a new billion dollar office skyscraper in your downtown on the condition that you sell him the land and make a special tax district that uses the increase in property value to improve the CBD; all which allows the city to retain a major fortune 500 company (the state's largest btw) and also attract many new companies to downtown and the city - what else is there to think about.??? Why couldn't this be fast-tracked?

I say, make it happen! I agree, I am impatient - but the way the economy is; I want OKC to flourish and begin to diversify (pop and industry) more.

guys, I meant - why is the city taking so long to sell the property, and approve the TIF. I suppose it is procedure, but they heard about the TIF, why wasn't there an immediate vote? Why wait to Dec 16?

I say, someone (a hometown industry leader by the way) is offering to build a new billion dollar office skyscraper in your downtown on the condition that you sell him the land and make a special tax district that uses the increase in property value to improve the CBD; all which allows the city to retain a major fortune 500 company (the state's largest btw) and also attract many new companies to downtown and the city - what else is there to think about.??? Why couldn't this be fast-tracked?

I say, make it happen! I agree, I am impatient - but the way the economy is; I want OKC to flourish and begin to diversify (pop and industry) more.

The building won't start construction for months anyways, so there is no need to fast-track that other stuff. It's just not necessary.

guys, I meant - why is the city taking so long to sell the property, and approve the TIF. I suppose it is procedure, but they heard about the TIF, why wasn't there an immediate vote? Why wait to Dec 16?

I say, someone (a hometown industry leader by the way) is offering to build a new billion dollar office skyscraper in your downtown on the condition that you sell him the land and make a special tax district that uses the increase in property value to improve the CBD; all which allows the city to retain a major fortune 500 company (the state's largest btw) and also attract many new companies to downtown and the city - what else is there to think about.??? Why couldn't this be fast-tracked?

I say, make it happen! I agree, I am impatient - but the way the economy is; I want OKC to flourish and begin to diversify (pop and industry) more.

Does Seattle fast track procedures like this? Just curious.

There may be a minimum "legal review period" time line that is set by city statutes for anything involving city property/contracts. It is to allow possible opposition to review the contract and prepare comments for the next commission hearing. Doing anything other than that could open the project up to potential litigation whether valid or not.

Perhaps Tom Elmore got in there and found some old rail lines that went through that land at some point in the past.


Sorry, I couldnt resist.

Perhaps Tom Elmore got in there and found some old rail lines that went through that land at some point in the past.


Sorry, I couldnt resist.

Him and David Glover...

Does Seattle fast track procedures like this? Just curious.

It's not Seattle that Im worried about. It's OKC.

I don't know Seattle's procedures and Im not so sure they fast-track (cause they dont need to), but I bet you Houston would if the project was offered to them. ...

I only commented, because I don't want the city to get in the way of this. Remember OKC Chamber Hq, Cotton Exchange, The Factory, Office Depot, The Galleria, Century Center, downsized Will Rogers World Airport terminal, the crown heights/36th Street/I-235 project, itty-bitty 'suburb-style' hotels downtown, suburban and downsized Legacy at the Arts, ... on and on. NOT a good track record at all. ...

But if you guys are confident - then so am I. :053:

I was watching Morning Joe yesterday and they mentioned Devon right along with Johnson and Johnson as stable, good bet stocks.

I do want to clarify my comments, I'm not saying Devon is stupid with their money. I just don't think any company was ready for the economic downturn. If it was me, I would hold onto as much cash as possible and delay construction.

As far as Devon and their cash is concerned, IT IS NOT A CONCERN. They are the most stable independent oil and gas company in their peer group. They are valued by wall street at 29 Billion dollars, they have close to 10 Billion dollars in cash on hand, and only have about 1.5 Billion in debt (a very minor amount considering their value). I would really not worry about them. They are continuing to build this building because this economic downturn is a recession, and as such, will end. They are anticipating it to end in the next year to year and a half. When it does end, they will be one of the best poised companies out there!

Devon will benefit greatly by continuing. I am in the commercial construction business worldwide and can tell you that construction costs are dropping quickly, and will continue to. Materials like copper and steel are down as much as more than 50% from just 6 months ago. They will get a bargain if they proceed as quickly as possible. If they delay even as much as 18-24 months, it will cost twice as much to build when they do, compared to getting purchasing committed right now or in the next 6-12 months. Contractors are hungry, equipment suppliers are hungry, labor is now plentiful.

Low fuel prices are very temporary. Just as oil was overvalued, it is now undervalued due to reactionary market trends. Luckily this happened around Christmas!

I have posted this before, but Iran will collapse with sustained low energy prices. Get ready, 'cause they're getting ready to get the pot stirring again. Russia's economy is now energy dependent. Venezuela's too. Low prices will not be sustained very long.

1.5 billion?! Why are they not being responsible to zap away that debt? What kind of a company willing to have "in debt" status and not using the money to pay it off? Who is hurting? If these 1.5 billion was loans obtained from banks, then Devon could very well be responsible for the collapse of these banks...by not repaying! Eh? Now I see Devon in a whole different picture....

Thunder you are out of your mind with the above statement. Who said anything about Devon not repaying any debt. Sure they could pay off a low interest loan but the cash on hand might be earning more interest that the debt is accruing.

1.5 billion?! Why are they not being responsible to zap away that debt? What kind of a company willing to have "in debt" status and not using the money to pay it off? Who is hurting? If these 1.5 billion was loans obtained from banks, then Devon could very well be responsible for the collapse of these banks...by not repaying! Eh? Now I see Devon in a whole different picture....

Hold on now! Take a look at what other companies have in debt before you make such statements.

Thunder you are out of your mind with the above statement. Who said anything about Devon not repaying any debt. Sure they could pay off a low interest loan but the cash on hand might be earning more interest that the debt is accruing.

Not to mention that (shooting from the hip here) all that debt is probably some sort of tax write-off/shelter or something.

I'll shut up about it now...As I really don't know.

From today's Oklahoman:

Mobile Breaking Oklahoma News | NewsOK.com (http://newsok.com/fortune-smiles-on-devon/article/3329982?custom_click=lead_story_title)



Fortune smiles on Devon
INVESTING Magazine includes Oklahoma City company on list of 10 sure-bet stocks for next year
Comments Comment on this article4
BY JACK MONEY
Published: December 13, 2008

An Oklahoma City-based company is on the list of 10 individual stocks Fortune Magazine says are sure bets in 2009.

Devon Energy Corp. officials said Friday they are flattered to be included.

"They must know a good thing when they see it,” teased Vincent White, Devon’s senior vice president of investor relations.

White said Fortune’s interest in Devon is based on how the Oklahoma City-based company’s board of directors and managers run the company.

To them, it’s about the long-term, White said. "We’ve been able to benefit from downturns in the market instead of being beat up by low prices.”

What Fortune wrote
Writers for Fortune Magazine wrote they think a rebound in oil prices seems inevitable.

They said it it will take new sources of oil and natural gas equivalent to finds four times the size of reserves of Saudi Arabia just to replace existing production declines.

They said Devon’s a good pick because of its low debt, because it does business almost exclusively in the U.S. and Canada and because its revenues are split between oil and natural gas.

"Obama’s policies are likely to strain natural-gas supplies,” Larry Nichols, Devon’s chief executive, told Fortune.

"So all else being equal, I expect higher prices next year, which is good for us.”

Industry observers agree. "We believe Devon has the most attractive asset portfolio in the oil sector,” Fadel Gheit, an analyst for Oppenheimer, told Fortune magazine.

"Everybody’s earnings are going to fall. These guys are going to fall less.”



Okay, so maybe the tower will not be affected as I thought.

Not to mention that (shooting from the hip here) all that debt is probably some sort of tax write-off/shelter or something.

I'll shut up about it now...As I really don't know.
I am sure those are from SEC reports which are a snapshot of a companies balance sheet. All companies carry some debt on a balance sheet, that could be rent, office supplies, etc., effectively any credit account with a balance would show up as a debt on the balance sheet even if you pay it off immediately because it could be between billing/pay cycles.

For a company with the market cap and cash position they have that is like an individual having a $200 balance on a credit card.

1.5 billion?! Why are they not being responsible to zap away that debt? What kind of a company willing to have "in debt" status and not using the money to pay it off? Who is hurting? If these 1.5 billion was loans obtained from banks, then Devon could very well be responsible for the collapse of these banks...by not repaying! Eh? Now I see Devon in a whole different picture....

You obviously don't understand.

Devon isn't hurting anyone by having debt. If I'm a bank, I'd be happy as can be to loan Devon as much money as possible. Devon is solid as a rock, you understand. If I'm a bank, and they DID pay off their debt in one quick move, I'd be upset, because that just might drive me out of business.

Banks make money based upon people owing them debt and making incremental payments. Banks have been reluctant to lend money lately because they don't trust the companies to still be there tomorrow.

Devon would be stupid to pay off debt if they've got a good interest rate. Hell, if you offered me a 1.5 billion dollar loan today at a good rate, I'd jump on it in a heartbeat. Don't know what I'm going to do with it, but I'll think of something.

Actually it should probably be termed "liabilities" instead of "debt", that would be a more accurate description of what form that debt is in.

maybe someone needs to start a new thread called "devon energy" not much in here latley about the tower itself.

I agree Sgt. Pepper...although I know there are a lot of different things to talk about regarding the Devon project and Devon as a company, this thread does get off track a lot!! LOL... :)

Well, discussion regarding the relative economic well-being of Devon became fair game when people started questioning whether the financial downturn and plummeting energy prices would impact the construction of the tower. Now that those issues have been addressed, hopefully we can all go back to talking about how cool it is going to be.

The TIF vote is today!!!

Low fuel prices are very temporary. Just as oil was overvalued, it is now undervalued due to reactionary market trends. Luckily this happened around Christmas!

I have posted this before, but Iran will collapse with sustained low energy prices. Get ready, 'cause they're getting ready to get the pot stirring again. Russia's economy is now energy dependent. Venezuela's too. Low prices will not be sustained very long.

prices were overvalued for 8 years... do we really know what will happen or how long this downturn will continue? from what was on TV recently... IRAN is not in a position to decrease supply, since they are so dependent on oil to keep their economy going. they are being affected by the worldwide economic crisis like everyone.

Don't expect an OPEC cut to do much. Higher fuel prices will only make things worse and with so many of the OPEC countries dependent on oil revenue they only have one other option - sell more oil. $/bbl X # of bbl = $ total revenue.

The 175 million TIF passed at council today....
City of Oklahoma City | News from OKCGOV (http://okc.gov/news/2008_12/tif_district.html)

Don't know but it is on Skyscraper Page. These sites are privately informed sites... that is, little contribution is made from engineering firms or the companies themselves.

In a nutshell, it doesn't matter why Emporis doesn't list it yet. Your concern should be Pickard Chilton's website. The minute they take Devon's link down, that would be when I'd be concerned.

Go after the source, people, not word of mouth. Word of mouth is what got our country in trouble to begin with.

I wouldn't put too much (or in fact any) focus on its posting on Pickard Chilton's site. They have at least one project on their site that was canceled many years ago.

My whole family is from Boston and they are all impresed with what is going on here! They have all been here about 5 years and they cannot believe what is going on here,coming from life long Bostonian's that is a big compliment!The Devon tower is just proof of the transformation of OKC !The NBA,Devon Tower,Maps,Maps/kid's,core2shore and maps 3 to come it is truly a great time to be apart of this and witness a true boomtown!

I wouldn't put too much (or in fact any) focus on its posting on Pickard Chilton's site. They have at least one project on their site that was canceled many years ago.

They list them as under construction, concept design, schematc design, etc. As of today, the building movign ahead.

it's amusing that people actually believe that devon is not going to build this building.

it's amusing that people actually believe that devon is not going to build this building.

Not sure if you were referring to me.... If so, let me clarify. I do not think for a minute that this building will not be built. I don't see any reason that Devon will not move forward with it. All I was saying was that making one's build/no build judgment on the judgment of the project's appearance on the Pickard Chilton's website is hazardous, to say the least. (On the very same page on which Devon Tower is shown, they also show the AIM corporate headquarters, a project that was canceled years ago.)

They list them as under construction, concept design, schematc design, etc. As of today, the building movign ahead.

I have no doubt the building is moving ahead. But again, Pickard Chilton's site is not the basis on which anyone should be making that judgment. Yes, they say this project's status is in "Schematic Design", but on the very same page, they show the long-dead AIM corporate headquarters, and they give no status. So the mere fact that the project still appears on the architect's website tells us nothing about its future.

This thread is hilarious. There has been more idiocy shown on these last 2 pages of this post than on the rest of this whole site. It seems some people have all of a sudden become a board member for Devon and now know all of the details of the company.

My guess is that it will move on as scheduled. This aint Chesapeake, its Devon. They have the resources right now to get it done.

As someone who has the opportunity to speak at least once a month or more with Larry Nichols, and as one of the few people using a real name on this board, I can tell you that onthestrip is correct. Nichols is staying consistent - the project is moving ahead at full speed, and I'm witnessing some very serious work being done behind the scenes. The company has the resources and need and desire to get this building built. Am I saying it's impossible for the naysayers to be correct? No. But I'm seeing nothing to back their claims at this point.

As someone who has the opportunity to speak at least once a month or more with Larry Nichols, and as one of the few people using a real name on this board, I can tell you that onthestrip is correct. Nichols is staying consistent - the project is moving ahead at full speed, and I'm witnessing some very serious work being done behind the scenes. The company has the resources and need and desire to get this building built. Am I saying it's impossible for the naysayers to be correct? No. But I'm seeing nothing to back their claims at this point.

What naysayers? A quick review of the last couple of pages will show the naysayers are few and far between indeed. Mostly a lot of people defending against imagined "naysayers."

prices were overvalued for 8 years... do we really know what will happen or how long this downturn will continue? from what was on TV recently... IRAN is not in a position to decrease supply, since they are so dependent on oil to keep their economy going. they are being affected by the worldwide economic crisis like everyone.

Oil was over valued for 8 years? :rofl:

1.5 billion?! Why are they not being responsible to zap away that debt? What kind of a company willing to have "in debt" status and not using the money to pay it off? Who is hurting? If these 1.5 billion was loans obtained from banks, then Devon could very well be responsible for the collapse of these banks...by not repaying! Eh? Now I see Devon in a whole different picture....

Good lord you have got to be kidding me.

Read up on business/banking/finance before you post this kind of nonsense in the future.

I was by the site this weekend...didn't really see anything going on as far as "pre work", which I think I read somewhere earlier in this thread that someone saw some "progress" going on. Also...since the tower will be almost right next to The Colcord, won't this all but cover up the Oklahoma Tower when looking north at downtown from the south?

No, you're not going to see site work yet. Probably this summer, however.

I was by the site this weekend...didn't really see anything going on as far as "pre work", which I think I read somewhere earlier in this thread that someone saw some "progress" going on. Also...since the tower will be almost right next to The Colcord, won't this all but cover up the Oklahoma Tower when looking north at downtown from the south?

Yes, from directly south it will mostly cover up Oklahoma Tower.

How often does one stand directly south of downtown and gaze in wonder at the Oklahoma Tower? :ohno:

Exactly.

The building is going to be in line with Harvey... so Oklahoma Tower will not be covered up from the direct South.

If the people at Oklahoma Tower don't like the view being blocked then let them add 40 stories to their building. I dare them.