This segment is from Tuesday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

This week numerous independent E&P's release third quarter earnings and initially, production numbers look good. Halcon Resources (NYSE:HK) turned in a solid performance and while the market has discounted this growth company after missing analyst estimates, investors should not be fooled as crude production continues to soar and costs steadily decline. Halcon is also positioned to increase production in 2014 as new wells in the Williston Basin and the El Halcon play in the Eagle Ford continue to show excellent initial production rates. 

Another intriguing oil producer that beat estimates and is primed for long term gains in Denbury Resources (NYSE:DNR). The CO2 enhanced oil recovery specialist is a long term play and patient investors should benefit immensely from this oil producer.