The energy sector is broadly defined to comprise all companies that produce power. It is divided into non-renewable and renewable sources. Currently, that conversation gravitates around oil and prices at the pump. It is no secret that the price of a gallon of gas factors heavily into everyday conversation around inflation and recessionary concerns. 

The good news is that prices have receded over the past few weeks. The national average for a gallon of regular gas sits at $4.44 at the time of writing. That’s down about 15 cents from a week ago and more than 50 cents from a month ago. 

In any case, oil and gas stocks will feature heavily in this list, but it will also include diverse choices from across the renewables sector, as well. 

Here are seven energy stocks trading at a discount now:

Energy Stocks Trading at a Discount: Cheniere Energy (LNG)

Cheniere Energy (NYSEAMERICAN:LNG) stock represents equity in the Houston-based firm that focuses on liquefied natural gas (or LNG). The company has liquefaction facilities in Texas and Louisiana, as well as offices in the U.S., London, and Asian financial centers. 

The reason to believe that Cheniere Energy is currently undervalued is that the heat wave being experienced across the U.S. is sending natural gas futures upward. That suggests that LNG stock, which currently trades around $146, could rise toward its consensus price above $168. 

Cheniere Energy should see more demand for LNG used in the production of energy as oil companies hold production steady. The heat wave is causing air conditioner use to spike, requiring more power to be put on the grid, and LNG futures have risen as the oil supply isn’t rising. 

Antero Resources (AR)

Antero Resources (NYSE:AR) is a stock worth considering for several reasons. Like Cheniere Energy, it has significant natural gas production. Rising natural gas futures bodes well for Antero Resources. 

The company is both an exploration and production firm with a heavy presence in upstream oil and gas and a midstream presence, as well. The company’s Antero Midstream arm allows the firm to market itself as the most integrated natural gas and liquids platform in North America. 

And while that is all well and good, investors should really be interested in Antero Resources because earnings expectations are rapidly improving. Analysts currently expect $1.91 in earnings per share from the company. A month ago, that number stood at $1.62. Three months ago, analysts only expected $1.34 in earnings from the stock. 

Energy Stocks Trading at a Discount: EQT Corporation (EQT)

As recently noted, Citigroup (NYSE:C) has reaffirmed its “buy” rating for EQT Corporation (NYSE:EQT) stock. That reaffirmation came on the heels of multiple banks and analyst firms similarly raising their price targets and ratings for EQT stock in the past few weeks. 

The company has large natural gas and natural gas liquids deposits across the Marcellus formation. Like the two firms above, EQT Corporation also benefits from current market dynamics that favor natural gas. 

Those dynamics mean that demand is rising quite rapidly. And rising demand means that earnings are rising in kind. A month ago, the expectation was that the firm would produce earnings of 56 cents per share this quarter. As demand has surged with unprecedented heat waves, so too have those earnings per share (or EPS) expectations, which have risen to 80 cents in the last few weeks. 

Kinder Morgan (KMI)

Kinder Morgan (NYSE:KMI) stock is an energy infrastructure stock that works specifically in the pipeline transportation sector. And it is performing very well, which second quarter earnings show. 

The company released earnings on Jul. 20, which should leave investors feeling very positive. Kinder Morgan recorded $650 million in net income on $5.151 billion in sales during the second quarter. A year earlier, it lost $977 million on $3.15 billion in sales as operating losses impaired performance. The strong results allowed management to issue a 27.75 cent dividend, 3% higher than that a year earlier. 

The company also alluded to the notion that U.S. energy infrastructure stocks will remain hot due to the political climate, stating: “The current geopolitical climate has only reinforced our view that the assets we operate and the services we provide will be needed for a long time to come.” The company also noted that it continues to update infrastructure to accommodate the transportation of renewable energy, as well.

Energy Stocks Trading at a Discount: Occidental Petroleum (OXY)

Investors worried that current energy trends might not last should consider Occidental Petroleum (NYSE:OXY) stock. The notion here is that the volatility that currently favors energy stocks, particularly oil, could shift quickly. That would mean that surging profits could quickly dissipate on changes in any number of factors. 

But Occidental Petroleum looks to be less susceptible to those factors based on the fact that Berkshire Hathaway (NYSE:BRK-B) recently bought another large chunk of OXY stock. After all, Warren Buffett has amassed his fortune on the time-tested principle of long-term investment in solid businesses he expects to win over a longer horizon. 

Berkshire Hathaway purchased another $250 million worth of Occidental Petroleum equities between Jul. 11 and 13. That puts its total ownership at 19.2% of the entire market capitalization of OXY stock. 

Exxon Mobil (XOM)

Exxon Mobil (NYSE:XOM) is a stock that is undervalued from the simple perspective of the current price and target price. It carries 18% upside on that basis alone. 

And all indications are that Exxon Mobil is set to see massive earnings this quarter that should rise multiple-fold. What’s equally important is that firm management is making sure that investors continue to see an attractive portion of those earnings. Last year it was the most profitable oil company. That prompted the company to instate a $10 billion share buyback program.

That comes on top of a dividend that hasn’t been reduced since 2002, coupled with a healthy 0.58 payout ratio. 

What that means is that investors can ride out dips in prices while continuing to count on dividend income in the meantime. That’s a smart way to play XOM stock as it focuses on environmental shifts to its business model that leave core competencies intact. 

Energy Stocks Trading at a Discount: SolarEdge Technologies (SEDG)

SolarEdge Technologies (NASDAQ:SEDG) stock has more than 22% upside baked into current prices based on price targets. One reason to believe it could reach those targets is the fact that Blackrock (NYSE:BLK) recently purchased a large block of SEDG shares. 

As my colleague, Eddie Pan pointed out, the move was prompted by rising prices for solar energy. In the second quarter, prices for solar energy rose by more than 8% due to tariffs and other externalities. 

The move bolsters the outlook for SEDG stock even as Blackrock wavers on U.S. equities while further Federal Reserve rate hikes loom and recession fears ratchet up. The company will release earnings results in early August and is coming off record revenues in the first quarter, so its outlook is generally positive. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.