I'm going to cut to the chase here. Devon Energy (NYSE: DVN) is a buy, provided you share management's view on its capital allocation policy. That's the key to the investment decision here, so here's an outline of everything you need to know before buying the stock.

The company's policy is to return 70% of its free cash flow (FCF) to investors, with the remaining 30% used to reduce debt and build its cash balance. The company's adjusted FCF in the first quarter was $623 million.

You can think of the 70%, or $436 million, in the first quarter in terms of three buckets:

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Source Fool.com