Devon Energy (NYSE: DVN) launched the oil industry's first fixed-plus-variable dividend framework last year. It designed that strategy to return more cash to its shareholders during periods of higher energy prices. With those prices surging in the past year, the variable payout had risen sharply.

However, the downside of the variable dividend structure is that Devon's payout will fall when commodity prices decline, which happened in the third quarter. That lower dividend payment might have some investors wondering if it's now time to sell.

Devon Energy produced $2.1 billion of operating cash flow in the third quarter, up 32% year over year. It reinvested 33% of those funds to maintain and grow its operations, leaving it with $1.5 billion of free cash flow. 

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Source Fool.com