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

Denbury Resources (NYSE:DNR) shares sold off earlier this week as investors did not look favorably on the company's move of initiating a dividend and remaining intact instead of forming into a master limited partnership (MLP). Unlike other oil producing MLPs, such as LINN Energy (OTC:LINEQ), Denbury has tremendous organic growth opportunities and does not need to focus on growing its business through acquisitions.

The sell off was unwarranted as Denbury's strategy remains strong with escalating  free cash flow expected in the next few years.